Tips on Starting a Property Investment

Property InvestmentOne of the many areas of investment, the property sector by many investors are still considered to be the safest, and promising capital gains and return on investment are higher than other investment instruments. But even then, not all properties purchased it certainly advantageous because if miscalculations you can also lose money.

To reduce the risk of the investment property, there are several things to consider before starting an investment. Here are important tips to be considered to maximize your investment property:

1. Momentum

Time in the real estate business is a valuable thing. The principle is to buy when prices are low and sell when prices are high. In these circumstances, the price will be depressed in absolute terms although nominally not go down. For example, if the price of $ 1 billion last year and this year the same, meaning that in real terms the price drops. This is the time to buy.

2. Developers who have integrity

Choose a developer who has integrity and already has a good track record. For developers who have good integrity, has the guarantee will not strand the project, because they are aware that the poor track record, also adversely affect the success of their next projects. Be careful with the “new player” and “hit and run player”. Before the deal, you should find information about their track record.

3. The best location

Buy a property that has a strategic location, since it is one of the strong factors that drive the increase in the selling price of your property and rental prices. The downtown location is a prospective area to guarantee a continuous rise or location with the possibility prices will continue to increase with the development. The strategic location and prospective usually located in the triangle of offices, business and economic growth.

4. Development of the future

Before buying a property, look at a map of urban development in the region in each local government. For example, if an area included in the plan of local government as an industrial area, the surge in land prices will definitely high.

5. Diversification

If you have sufficient funds to buy more than one house do not buy a lot of houses in one location, especially sites that we do not know its prospects. This is to reduce the risk of the location of the housing.

6. Sources of financing

Investors need to be creative whether choosing cash, credit or cash to finance investment gradually, depending on the ability of investors and the state.

7. Prospects property

Type of property such as offices, condos and retail still prospectively as investment land. Returns capitalization of the three types of property which guarantees faster. The rate of return of apartments and condominiums topped with returns ranging from 8-12 percent. The return on the rental office 7-10 percent and retail such as kiosks and stores by 5-9 percent.

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