Real Estate Investment: Things to Remember
Whether you’re planning a retirement plan or starting a new way to get tons of money, real estate investment could be your best option. Yes, real estate investment is so promising, it could gives you a lot of money and other advantages. But, only if you do it right.
Many people think real estate investment is just about buy property, rent it to other people, sit at home all day, and the money will come voluntarily. While it’s true, there’s also a lot of things that you have to pay attention first, before you can just relax at your couch counting all of your money. Once you follow these tips, you will find real estate investment is a gold mine. Not a pathway to failure.
REAL ESTATE INVESTMENT and PROPERTY TAX
We know. We know paying your tax is an ultimate buzzkill, but that’s what you have to do in order to be a good citizen, right? And of course there’s no exception for property tax. As long as the property belongs to you, its tax will automatically become your responsibility. This will become your annual outcome, the price that you should remember to pay, so your property is legally lived in.
MAINTENANCE COST and INSURANCE
Like a car, property also need to be well maintained. There are things need to be maintained daily, weekly, monthly, and yearly. These things will not come with no price tag. You have to prepare your funds for these things too. Make a low, but optimized budget plan to take care of your property. It’ll help your potential or existing customer to have a wonderful stay at your property.
THE LEVEL of CRIME AROUND THE PROPERTY
It doesn’t matter if you’re going to invest in villas, hotels, apartments, houses, or any other kinds of building–no one wants to live in dangerous area, right? When you choose to invest in a property with high rate of crimes, you’ll end up having no money later. As the opposite, if you’re investing in a peaceful area, you’re getting close to find your gold.
Learn exactly the rate of vandalism, small crime, serious crime, or any others related things.
THE POTENTIAL for NATURAL DISASTERS
Just because a particular area has low rate of crimes, doesn’t mean it’s already peacefully enough for people to stay there. You have to remember the possibilities of disasters around the property’s area, like earthquake, hurricane, or flood. You can easily check it by reading into the history of disasters which have happened in the area.
When people find out your property is built in an area with high potential of natural disasters, it’ll become less valuable. And you’ll have to put higher price for its insurance too.
THE FUTURE DEVELOPMENT PLANS
A property is considered valuable not only from its current situation, but also from the future development plans–whether it’s for the property itself, or for the area around it. If there are plans to build school, mall, or recreation park around the property, surely the property will become more valuable. Especially to the family.
If there are plans to build factories, office buildings, or apartments around the property, it’ll become less valuable for a family to stay at that property.
IS THE PROPERTY CLOSE to ANY SCHOOL?
This will only apply when you’re investing in the type of property for families. Surely, every parents want their kids to go to a school. For parents, it’s useless to have a nice living place, when there’s no good school around it for their kids.
THE EXISTING PUBLIC FACILITIES
Living is complex. It’s not just about wake up, eat, and sleep. There are needs, and there are activities. People will find your property much more valuable if they find out there are malls, markets, access for public transportation, hospitals, or any other facilities that can help them live comfortably around the property.
Before you choose to invest in a particular property, take a look first if the property is located in a strategic place or not.
THE EXISTING JOB OPPORTUNITIES
A two hour journey from workplace to home is not everyone’s dream. People want to arrive at their home as soon as possible, right after they clock out from their office. This could help you to find out if a property is worth of your investment. Make some small researches if there’s a lot of job opportunities around the property. If yes, the property should get one of your positive marks.
PAY ATTENTION to the ENVIRONMENT AROUND THE PROPERTY
Investing in real estate is tricky. There’s a lot of things that you have to pay attention first, before you make decision which property is worth of your money. You have to aware if the type of property that you’ll invest is built in the its suitable environment. If you’re going to invest in villa, you have to aware if the villa is built in a quiet place with scenery view. If you’re going to invest in office building, you have to ask if the building is built in the business area or not. Every building will worth every penny if they’re built in its suitable environment.
Now, you’re ready to make an real estate investment. Find your property candidates now, and do the research. If you find any difficulties to make the decision, we’re here. We’ll help you to start your real estate investment.
Contact us here.