Everyone tries to achieve material prosperity and financial independence as soon as possible. Investments in real estate have long been considered one of the most reliable ways of investing money, a mandatory symbol of stability and solvency, and saving a lot of money after meeting all basic needs of your life.
However, on several occasions, individuals end up making investments in wrong real estate projects. As a result, they lose their money and miserably fail to save some bucks while making an investment in property. If you are looking for effective money saving tips while making investments in property, here are some recommendations:
- Determine the Actual Condition of The Real Estate Market
At first, accurately determine the state of the real estate market you are about to invest your savings. Just evaluate the stage of active growth, recession or tedious waiting, availability of reputable realtors, etc. If you decide to make an investment in real estate projects in a city, determine how much it can change in just a few years to come. When housing prices are at a minimum level, you should acquire that ASAP. When its value rises, sell it to gain the advantage. You can rent the property during this period to earn some money in an easy way.
- Seriously Mull Over Time Period of Investing in Real Estate
You should make long-term investments in the real estate industry if you are really serious about saving some bucks. If you decide to purchase housing in the primary market, which is located at a certain stage of construction, it can take a significant amount of time for the acquisition of the property. So, it is better to buy an already lived apartment (secondary market) in a long-built house. Always keep in mind that a full-fledged repair and arrangement of apartments in new buildings can take up to 1-2 years.
Even if you do all this before the other owners of neighboring apartments, potential landlords are unlikely to be very interested in your offer until the completion of the entire building’s renovation. In this case, the payback period of your investment in real estate can drag on. So, always note that the acquisition of housing in the secondary market will cost more and the payback period of your deposit will be significantly reduced. So, consider all these factors carefully and make an investment as suits your needs and financial condition.
- Desired Income
In the real estate business, savings depend on the specific city and the state of the market. However, you should calculate the approximate income from the future acquisition of real estate property. First of all, find out the average cost of an apartment or house in the area you want to invest. You can find the overall cost of house renting in local newspapers, as well as on specialized sites. This will help you to make investments only in appropriate projects and save your hard-earned money.
- Get More Knowledge About Your Neighborhood
Before buying a property, you must study about its location closely. People will not like to buy houses whose window open on a leaking river, a busy highway or a garbage dump. Have a look at the surrounding infrastructure and determine whether the area convenient for living or not. All these small nonsense keeps buyers away from your property and you face loss in the real estate business.
- Find an Intelligent Realtor
Not all agents in the field of real estate can be useful for profitable investment of capital. When you decide to seek help from a realtor, make sure that he/she has a good track record and proper experience in terms of selling a large number of real estate projects. Such a person should understand the essence of return on investment (ROI), net operating profit (NOI), as well as other important indicators of feasibility in the real estate business.
- Purchase Houses as Personal Property
You must buy houses as personal property to save your bucks. It will help you to decrease your tax liability and make the deal with the most affordable financing with a lower down payment. For this, you should take the help of property lawyers. This will help you to buy houses on affordable price tags, attract potential leaseholders and later sell them as commercial property at higher price rates.
- Spend Sufficient Time to Take Care of Your Buildings
If you consider investing in real estate, you will have to spend a lot of effort, time and money for repairs, proper arrangement of living space, purchase of various necessary equipments. You will have to constantly manage your attachments, monitor their status, and regularly communicate with landlords, realtors and various services. So, make sure that you have enough time to take care of all these activities so that you can save lots of money which are spent on staff hiring.
Before making an investment in property, just evaluate all the advantages and disadvantages. This will help you to make the best use of the invested money, ensure a good ROI and save some bucks as well.
This post is written by David Lane. He was born and raised in Thailand. He is working as a Realtor for Thailand-property, Offering best Thai property for their clients . David is praised most often by clients for his enthusiasm, patient approach and unwavering loyalty. Apart from this , David loves to do fly fishing, sporting clays and play golf.