Investing in real estate through the purchase of a property such as a house, department, commercial premises or land is an investment alternative considered by some experts as low risk, safe and profitable for the user where one acquires the property when he expects its value increases and then sells it or rent it.
Even so, despite being considered as a safe and low-risk investment, some people who decided to invest in the purchase of property suffered large losses due to various factors that influenced the recovery of the investment.
For that reason, below we bring you some points that you must take into account so as not to put your investment at risk if you wish to enter the world of real estate.
1.- Analyze the property to be acquired and the investment that your purchase means
Consider various factors that may put your investment at risk. The repairs it will make, the taxes it will pay. In this case see the possibility that the property can be resold or rented at a price that justifies the investment.
2.- Think about the long-term investment and do not sell early
It is considered that these types of investments are long-term and in some cases medium-term. Keep in mind that the investment and the profit can be the same way. Consider a time not less than 3 years.
3.- Calculate the profitability of the property before investing
It is also suggested to take into account some risk factors in the event of a possible loss of the investment in the property.
4.- Diversify the investment
Consider not investing all your savings in a single market. We recommend diversifying your purchases in the real estate world. One option is to buy cheap homes and then rent them instead of buying only one house with a high cost.
5.- Always keep in mind the pre-sale of real estate
Searching projects in pre-sale assures you even more the profitability of your investment at the time of the long-term sale of the acquired property.
6.- Check the documentation of the property to avoid future problems
Seek the legal support of a lawyer or a notary for the transaction of the purchased property. Have the property titles and land use licenses as well as the plans of the property where the limits of the property are specified.
7.-If you want to rent your property
In case of rent ensure the existence of guarantees that do not bring problems in the future. Also look for all possible tenant references.
8.- Check the papers
In the event that the property to be purchased continues under construction, make sure that the executing company has the correct papers that guarantee the completion of the work. Also, we recommend getting a copy of the building’s construction license.
9.- Analyze the real estate market
Before making a purchase or a loan look for some market indicators. In this case, the real estate world can have its ups and downs depending on various factors, for that reason perform a search and see if it is a good time to invest in real estate.
10.- Choose a good place to buy
If there is a large supply of real estate in the area, it is possible that the increase in the sale or rental value of your house or apartment will stagnate. Check which are the safest areas to achieve a sale or rental of your property successfully.