What Makes a Property a Solid Investment?high appreciation rate ideal location property for investment property investment property maintenance real estate professional solid investment
April 10, 2017
Recently, Forbes released a list of the world’s richest. It is amazing to see such wealth through different industries. Drilling down to each on the list, you’ll see that most of these world’s richest started or gained their fortune through acquiring and selling real estate. Real estate has contributed to the world’s wealth. It can also be a great factor for the rising and falling of the economy. Having real estate is acquiring an investment.
To answer what makes a property a solid investment, one should know first what investment is. Here is a definition of investment from Investopedia:
“An investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.”
With this definition, a solid investment is an asset that is sure to generate income and appreciate well.
There is so many advantages in having real estate as an investment compared to other material possessions or businesses. Unlike having a car that depreciates in value, the value of real estate appreciates through time. In fact, property prices some years ago is clearly lower than it is today. This makes real estate a good investment unlike any other.
Understanding this more, you should look at the factors that makes a property a solid investment.
The Quality of the Property
The first thing that you should consider investing in real estate is the quality of the property. Does the quality of the property reasonable for its price? Do you think someone would want the property because of its quality? These are some of the questions that you should be asking when looking for a property for investment. As you would want to either sell or have it rented, make sure that the property is of prime quality, attractive both to buyers and renters.
The Price is Reasonable
Related to the first factor, the price comes in as important on whether the property is a solid investment or not. Is an off-plan property a much better idea than an already built property? Most of the time, off-plan properties are cheaper since the property is still in its construction phase. Sometimes, it also is a safer investment plan since you will not be paying outright than an already constructed property.
Should you want an already built property or an off-plan property will be depending on your investment strategy.
The Location is Ideal
Whether it’s for investment or for personal use, having a good location for your property is a must. The location is an important factor as it can define in what way will you be doing to your real estate investment.
A property located in the city near some offices can be a good property to be rented for the employees. If it’s located in a prime area or sought after location, then it could be best that it should be sold with reasonable profit. These are just some of the examples that you could think of in looking for a nice location for your property investment.
A High Appreciation Rate for a Property
As an investor, it is but just normal to think of how you could make a sizeable income from your real estate investment. Does the property have a good appreciation rate? Real estate prices are dependent to the location they are set in. Some areas will have a slower appreciation value than other areas. This is due mainly either to the economy of that area or the demand for property in that area. These are important matters when you are looking at generating income from your property.
Know the appreciation rate of the property you are investing to from your real estate brokers. They are the experts for these kinds of information. If you need assistance from a real estate professional, For Est Real Estate has several experts.
The Maintenance of the Property
Often, property maintenance and management are not considered in purchasing a property but this are important factors for a solid investment. A property with poor maintenance and management is a precedent for poor quality property. It would be wonderful if the property is of good quality and has good management and maintenance as well. In looking for a property, you should also consider asking for the maintenance and management of the property as this can be a factor in generating more income from your real estate investment.
These are just some of the factors that you could have as a checklist in determining whether a property is a solid investment or not. In general, owning real estate is a sure shot investment.
For Est Real Estate could help you in looking for a solid investment. For Est has a long list of properties that are good investments which are in various areas of Dubai. You could check For Est Real Estate listings or contact us directly to assist you.
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