Investing in a real estate business is among the top three investment options that include mutual funds and stock markets. And like the latter two, it involves a lot of potential risks as well. Even though they say that investing in a real estate is a source of “passive income”, there is nothing passive about it. You need to be actively involved in every aspect right from buying, to maintaining, to reselling it. Finally, it depends not just upon the real estate market value but also on your financial status. So, before you go on to invest in an estate, make sure that you keep the following tips in mind.
- Make Sure You Are Ready to Be A Landlord
Garner as much information as you can on property dealings through interactions or from books or articles. There are several mortgage brokers, investors and real estate agents in Turkey that you could speak to. Buying and maintaining a property is not as easy as it sounds. There is a lot of hands on work involved. You need to find the right tenants and be able to deal with them. You’ll be required to put in a lot of efforts before you can reap the benefits.
- Continuously Stay Up to Date with The Real Estate Market Rate.
Keeping a track on the rise and fall patterns of the real estate market in the area where you wish to buy your property can really help you make your investment decision. If the housing prices have gone down and your finances are stable then you might want to invest and if the prices are high, then you might want to reconsider your decision. Ben Mallah
- Ensure Income Stability.
The stability of your income depends upon your professional stability. Whether or not the company you work at is doing well, whether your salary will remain stable or increase over the next 6 months, your family needs, your relationship status. If you are unsure about your financial status then investing in a property probably might not be the best idea, no matter how lucrative the option might seem. You can never predict what you’re your life might take in the next instant so you might want to save a little before you decide to take the plunge. Your income stability will also influence your loan or credit availability and the interest rate.
- Make Up Your Mind on What You Intend to Do with The Property.
Not all of us have the same intentions in mind when we see a piece of land. While some look at it as a permanent habitat for themselves, others wish to turn it into a holiday home. Some may even want to turn it into a commercial business, sell it or rent it out. Just make sure it is within your budget or your future financial life can get extremely stressful.
- Check the Property Conditions.
If you’ve set your eye on a particular property than don’t just get taken away by its face value. Hire an inspector to come check out if the property is in living conditions. Sometimes the cost of renovation can be much higher than the actual cost of the property. So, it’s wise to consider all these factors.
- Be Aware of The Potential Risks Involved.
There are a lot of guaranteed risks involved in the real estate sector. So before you go on to invest it is recommended that you calculate your ROI. It is similar to any mutual funds or stock market that you might want to invest in to, they’re all subjected to market risks. Now calculating the return on investment on a property can prove to be quite a daunting task, so take the help of a real estate adviser. If you rent out or lease the property to tenants, then their rent could help clear out the loans. But this need not be the ideal solution.
Brooding over the above tips could help you make a more informed decision. You can always contact a financial advisor to help you understand the market variations better.