When starting to invest in real estate, there are several factors you need to consider to make sure that you’re getting the best deal. These include:
Location
For real property, location is among the primary drivers of profitability. If you’re buying a residential property, consider how close it is to amenities, green space, and overall safety of the neighbourhood. For commercial properties, look for accessibility, distance to markets, and favourable tax rules within the area.
Property valuation
This will help you determine if the investment property fits your budget. Consider the listing price, insurance cost, and tax implications. Doing an investment analysis can also aid in your decision.
Investment goals
Why do you want to start investing in real estate? Is it to generate passive income? Do you want to build wealth? Setting clear goals gives you direction in your investment journey.
Alternative investments
As mentioned, not all real estate investments are residential and commercial establishments. Alternative investments, such as REITs, crowdfunding platforms, and MICs, allow you to invest in the real estate market without the headaches of owning a property. These investments also require less funding than when purchasing a property.
