What are the fundamentals for investing safely?
The benefit bigger than invest in property It is to be able to have the best balance between return and risk.
Even in the face of a potential high gain, indeed, You must not bear an equally high risk, as it happens with other investment vehicles.
However, this applies only if you have all the knowledge and skills required to not commit mistakes!
This article will show you the 5 most important factors to consider when you invest in real estate to make you bring in a simple but effective for this type of investment.
These tips, I give you based on my experience, you need to invest in trying to get the Better Returns reducing minimizing risks.
First of all you must decide if you want to make a short- or long-term investment, so if you bet on the sale or on the development of the property income.
You have to choose before taking any step because every next choice will depend on this.
here are the 5 most important elements of which must be taken into account and that you approcciarti differently depending on whether you want to sell or rent.
1. Area in which to invest
This is the area prime factor vital that you have to consider when you go looking for a property in which to invest.
First, the house must be in a 'area with high commercial value: It should be a place where there are effective requests of purchase or rental.
You can start from the most profitable areas of center of a big city or from an area typically strategic like that university.
Consider that a property is more palatable when it is placed in an area with a good life quality, that is equipped with all those services that make it a more livable place.
You can also bet on commercial areas or those where other works to improve the lives of citizens are made, eg parks or you green areas.
The property you buy can be transformed to your liking, but wrong area can not be changed and irreparably compromise your investment.
Read the discussion on the choice of the best areas in which to invest
2. Subtype
The second step is the choice of the property. You must locate the cutting housing best: studio flat, two-room, trilocale or other?
The answer depends on the area you selected: for what type of dwelling there increased demand in quell’area? The most important thing is that the building has the characteristics that make it commercializzabile.
He studies all its potential: surface, number of local, heating, presence of windows, balconies, garden or garage, piano, lift. It's still: what it is his state of conservation? It is furnished or empty? as the condo?
You must be able to understand if the property that you have chosen according to certain parameters is what also choose your potential purchaser or tenant according to his needs.
If it escapes some important element can affect his decision to buy or rent your property.
Read the discussion on the choice of types of real estate in which to invest
3. Property Price
Price is also an important element: you have to be able to buy a property that is worth the asking price or, even better, buy single-digit lower a market average.
Today you can do it even more simply because of the 'favorable trend in the real estate sector, with low prices and trades in growth.
Figure out if the property you want to buy is worth the price you are asked, But, It is not at all easy.
You must evaluate the real value of the property market, and you can only do this by knowing the average price of homes in that area and carefully analyzing all Property features.
Therefore it is said that "the real deal in real estate investments do when buying and not selling".
Only by careful analysis you can understand if the one you have in front is the best possible solution in a property with high potential marketability and its purchase price.
4. Purchase Costs, management and maintenance
A major factor in making a good investment property is the calculation of initial costs and those that will be incurred at a later time.
When you buy a property to sell it or put it in income must in fact consider all the costs of various investment stages.
At first, in addition to the property purchase price, there are other side costs like them notarial.
In the second stage you will need to support the restructuring costs, retraining and eventual furniture of the House. Here the current Italian legislation comes to help with the law providing for tax deduction of 50% for building renovations.
Finally there are the condominium fees and tax, that exist and can not be avoided.
The important thing is that you know do well to check the accounts at the appropriate time if, net of all expenses, what you have in your hands is a profitable investment.
5. Professional team
To invest in property you also need a Team of experts to help you analyze and impeccably manage aspects of your investment:
- Notary: It requires his presence for the preparation and formalization of transactions, a reference notary allows you to speed up the bureaucratic aspects of investment.
- Accountant: critical to the tax aspects of the transaction, if trusted guarantees you a specific study of your investment and allows you to assess the best solution for compliance with the law.
- Surveyor: care of the more technical aspects of purchase and if you follow properly you can also take the relations with the relevant authorities and resolve the property issues.
- banking Consultant: if the amount to be invested is not entirely your, a banking consultant will evaluate the most appropriate financial solutions guaranteeing fast response times.
- Lawyer: deals with the legal part, avoiding that during and after the transaction there are unpleasant surprises and defects that may compromise the operation.
- Architect: you can not do without a good architect if you plan to perform the work to the property and if it is a serious professional will try to find the best solutions to your needs.
- Company restructuring: indispensable to make changes and restructuring, a trusted company guarantees short lead times and work done to perfection.
At each stage of your investment you need these different types of professionals. Even better if it is a proven team that is already working together for years and, thanks to his experience, It will be able to minimize the risks of your real estate transaction and guarantee the preset gain.
Read the study on 3 experts that you need to invest in property
The success of an investment property depends on your ability to buy l 'right property, in right place and to right price, to consult with competent professionals and do all calculations correctly in order to resell or rent at a price that will allow you to earn.
Contact for a free consultation: we'll tell you how we can guide you step by step to get you safely do all these operations.
