Real estate investment is considered a type of not “picky” investors. Anyone can become a real estate investor.
Why does this type of investment attract more people’s attention than other types of investment? Let’s answer with Aequitas Audit through the information below!
In fact, there are many people who have become billionaires by knowing how to start a real estate business. What are the benefits of investing in real estate? Why should you choose real estate investment over other types of investment? Ways to help you invest effectively?
Benefits of investing in real estate
Benefit from the Government’s development policy
The real estate market has benefited greatly from the government’s policies on urban development and infrastructure planning. This is something that other types of investments do not have.
Government or investment companies often spend a large amount of money on transport infrastructure. Specifically:
- Roads (highways, tunnels, bridges…), railways (Metro lines), airports…
- Schools, hospitals, factories, shopping malls…
These utilities contribute to changing the face of many regions of the country, increasing housing demand. As a result, the value of real estate has many opportunities to “follow”. Leads to investors not need to spend a dime.
Typically, projects along Metro Line 1 have also had a sharp increase in selling prices. After much information, this highway will be put into use in 2021.
Make good profits in real estate transactions
Easily recognized, gold or securities are often listed on the market price. But for real estate, investors can negotiate better prices.
Real estate values increase over time
Reality has shown that real estate prices tend to increase over time. But other types such as gold, securities, the price fluctuates up and down and is not stable. With the selling price increasing over time, buying and selling real estate helps investors be flexible in each moment of the market. They can find an investment strategy that suits their financial goals:
Long-term profit growth
Real estate has a constant trend of always increasing over time. This is the bottom line for long-term investors who are not afraid of devaluation. Just sit patiently and look at the market and choose a reasonable time to trade.
Diverse types of real estate investment
Compared with other investment channels such as: gold, bank savings, securities, etc., real estate has more diversified investment types. You can choose to invest in apartments, townhouses, land plots, shophouses, resort villas. In addition, there are other types of investment such as factory investment, cemetery garden, etc.
Need money now
Are investors in need of immediate financial support or need to pay monthly bank interest? Choose a rental investment form, they will easily access stable money over time.
Add value, good liquidity for real estate
Investors who want to invest and get money back soon in the short or medium term, what they need to do to increase the value of the investment property is to renovate or subdivide real estate. Investors can repaint the bedroom wall. Or put a new carpet for the living room, buy a new set of kitchen utensils… Or you can change the structure of the house: add a bedroom, living room, landscape garden…
This will help attract customers and improve profits much more than the cost. Subdividing real estate is suitable for large real estate. The aim is to increase the liquidity of the asset. Simply put, small value with an appropriate area will help customers easily access and own real estate.
Stable real estate market
In the real estate market, it is not easy for people to change the law, interest rates, legal procedures, market prices… If you want to change, you need to have an immediate impact on the market. Not to mention the real estate market is increasingly under the strict control of the authorities. This means that the real estate market in the long run is relatively stable compared to other investment markets such as stocks, gold, and foreign exchange.
How to invest in real estate effectively
What type of real estate should I invest in?
As mentioned above, real estate has many types to invest. The investor’s job is to choose a suitable type. According to experts, investing in the following types of real estate will promise to bring you the most profit.
Buy the best real estate
Buy real estate where the rich hang out. Because those places will have the best climate, natural scenery and services… Moreover, you will also easily resell your real estate to people who have a lot of money and make huge profits.
Buy real estate with a favorable geographical location
The location factor, the social environment is more important than your real estate. Investors need to pay attention to the following factors:
- Is the location convenient for commuting?
- Is transportation easy?
- Are the services convenient?
- Is the climate fresh or polluted?…
Buying a bad house with a favorable location is still better than a beautiful house with an unfavorable location. Because bad houses can still be repaired according to their wishes. Therefore, in case investors have good financial resources, they should buy real estate with a large area. Because it promises much higher returns.
Invest in real estate for family rental
Investing in single-family homes is the best solution for mid-level investors in buying, financing, managing and selling those homes. You will not have to hire as many workers to manage as in multi-tenant buildings. On the other hand, if a family incident occurs, it will not affect other households.
Real estate that meets the needs of the community
One of the ways to invest with high efficiency is to invest in building houses for sale or rent. However, you need to remind and calculate carefully. Do not try to open a hotel in a deserted place or inconvenient to traffic. Or like opening a high-end spa in a low-income industrial park…
Thanks to the support of a real estate investment consultant
The consultants will help you avoid the risks and troubles with home buyers and sellers and help the buying and selling process go smoothly and smoothly. Find yourself good, reliable experts to advise. They must be knowledgeable about the market. Same negotiation skills with customers, pricing strategy, tax calculation ability. And above all, the ability to upgrade the property to sell for a higher price than usual.
In addition, if you are not familiar with the procedures, it is best to consult a lawyer or legal counsel. They are the people who help you keep track of the contract, terms and legality of the sales documents.
Or you can also find an architect. A person with construction expertise will help you check for defects in the house such as ceilings, foundations, roofs… They will advise you on upgrading, repairing, or have unique designs that increase value. House. Customers will always be attracted by beautiful, perfect homes, with little to no remodeling. Or enjoy homes that can be easily renovated after purchase.
Carefully consider your financial ability
Investing in real estate often requires raising large amounts of cash. Therefore, you must consider and calculate your financial skills before deciding to invest.
If you have to borrow from a bank to invest in real estate, you need to pay attention to the loan interest rate, loan term as well as ability to pay. Just a little difference, you have to pay a huge interest during the loan period. Because the money invested in real estate is often very large.
You can raise idle money from some of your friends and family by inviting them to buy real estate together. This reduces risk and gives you peace of mind when it comes to long-term investments. However, you will enjoy less profit than usual.
Always looking for and calculating about real estate investment opportunities
Determine the volatility cycle. Calculation of growth potential. Find the right strategy for each period, the best time to sell real estate. That is the secret of successful investment of professional investors.
Find the right strategy for each stage
At any given time in any market, real estate can fluctuate widely. However, volatility is always accompanied by change and the emergence of new opportunities. All you need to do is work hard to find a suitable strategy.
Identify the life cycle of real estate
The real estate market is always cyclical. If they are amateur investors, short capital, when the market crashes, they accept losses and sell off their real estate. And the winning investors are those who know how to wait and profit from buying other real estate at a cheap price.
Consider growth potential
If you are a long-term investor, you should calculate the development potential of the places where real estate is intended. There are many people who have made huge sums of money buying land from when they were industrial zones to when they became commercial land.
Every property has a right time to sell
Usually, holding on to real estate for a long time will increase its value. However, not knowing how to seize the opportunity will increase the risk of the investment. When holding real estate for too long without the right strategy, you will lose a large amount of money from your own capital backlog.
Hopefully, the above sharing about real estate investment has helped you gain more understanding in investment. Don’t forget to visit AequitasAudit.com for quick updates on real estate market fluctuations!
Phuong Dung – Content Writer
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