Essential guide for successful property investment

03-Jun-2015

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Property investment is the purchase or building of a real estate with the intention of gaining a return on investment that is either through future resale or through rent. Property investment can either be long-term, or a short-term investment but the fact is there is an intention of earning. For an investor to have the real value of his or her investment in property, and then he or she should follow some guidelines. In this article, the essential guidelines for a successful property investment will be addressed.

 

Research the market

For an investor who is new in the market, then he or she should first carryout a research of the market. This will make him, or her know the risks and the benefits of the investment he or she intends to have. For instance if one wants to invest in a buy-to-let  investment, the capital is tied and maybe the property may fall in value and that is why the investor should first carryout the research of the market and that property. For instance, when one wants to invest in Turkeys villas, the research should be on how the property cost as well as its appreciation or depreciation. In addition, the research on the villas will help the investor to know if there is a good return on investment.

Do the math

Before an investor invests in a property, he or she should sit down and calculate the total and the projections of the property he or she is willing to invest on. If one wants to develop a new property, then he or she should have the plan and do the math of developing the property and its return. If one wants to buy an already developed property, then the investor need to access the cost of the property and cost of similar property in the area. Majority of villas for sale in Turkey range on the same price and thus for an investor who wants to invest in those villas then he or she should know the cost of villas in the area he or she wants to invest in.

Think about the target

An investor should not think that he or she is the one who will live in the property instead he or she should put himself or herself in the tenants shoes or the customer. The investor should know the targeted customer and what they want for instance for students and low-class individuals, then the property should not be luxurious as it should be for the middle and high-class individuals. Turkey villas are luxurious and comfortable and thus if an investor wants to invest in the villas then he or she should target middle and high-class individuals as well as individuals who have families.

 

Do not be over ambitious and know the pitfalls

An investor should not be over ambitious on the property investment that is he or she should not invest for short-term capital growth but for earnings. The investor should know the earnings by comparing the purchase price or the initial cost with the collections made in that year. In the pitfall side, the investor should know that if it is a rental property then the property might stay unoccupied for sometimes in the year even if it is a popular location. Furthermore, the investor should know that the properties need repair and thus he or she should set aside money for that purpose.

Conclusion

In the whole world, property investment is on the rise, and for one to be successful as an investor, and then he or she must have a good guide on his or her investment. A good guideline should consider the research on the market where the investor wants to invest as well as the math of the investment. For the research, the investor should rely on both primary and secondary information. Furthermore, the guide should consider the target market as this is the key to the earning for one cannot build a luxurious house or hotel in a lower-class area. In addition, the guide should not be over ambitious and should consider the pitfalls that are likely to occur after the investor acquires the property.

 

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