Top Five factors you must consider while investing in property
Ups and downs of the past few years have made it clear that you never know what’s coming next in real estate world and when it comes to investment, it's safe to say that all investors share one goal: their financial well-being.
Any investment opportunity that doesn’t meet the estimated profit is known as failure investment. While successful investments have an appropriate strategy and know-how of the market.
Most of the people believe that the market hates uncertainty’ it’s pretty common saying in the investment lexicon, but it goes wrong these days. Uncertainty is a major barrier, where there are different aspects, some that can be measured and some that cannot.
“Doubt is not a pleasant condition, but certainty is an absurd one.”
Uncertainty is something you cannot ignore when thinking of investing. But as individuals, we can feel more or less uncertain. Instead of giving up, one should understand that uncertainty is an inherent and ever-present part of investing in markets.
Successful investments tend to share some qualities to be prepared for shocks and surprises - pay proper attention to these primary factors to consider when investing in property.
Know the general market conditions
- Be aware of the market and your targeted audience
- Keep a check on good times to invest in the real estate market.
- Learn from others' experiences and do not repeat these mistakes.
- Know your intention whether you are investing for the sake of profit or your goal is appreciation in value?
- Be careful when choosing an area for investment.
- A buyer should consult with a realtor specializing in commercial property in your target market.
Don’t forget to perform income and expense analysis:
- Income and expense analysis is the most valid point when it comes to property investment, this helps a buyer understand the total costs scenario, money cycle, tricks to increase revenue and profit ratio for future understanding.
- Consider consulting a mortgage broker once you are ready to invest your money.
Be in touch with your property
- In order to determine the soundness of your investment, you need to be in touch with your property on a monthly basis.
Tax approval before investment
- Inspecting a copy of the property’s real estate tax history is highly recommendable. Taxation is a very sensitive yet difficult matter. Don’t fall for property’s outlook and let anyone fool you, determine if any tax is pending before getting into trouble.
- Go through if there are any pending bills.
- Review the property’s insurance policy document, including claims history.
Obtaining these documents can reveal some critical information.
Visit the local municipality’s building department
- Visiting the local municipality’s building department will help a lot.
- Check all the important documents such as certificates of completion, property case (if any), property survey, etc.
- All the above-mentioned documents will help you to be confident about your investment. You can proudly claim the legal use and occupancy of the premises.
If you are an investor and trapped somewhere in-between stocks vs. property investment opportunities - property has a greater rank with the higher return. Uncertainty is still a part of property investment but things still remain in your hand, as there are little odds of loss and you can recover the actual cost.