Price vs Location: How to Pick the Right Property
One of the oldest and most traditional ways to accumulate wealth and earn large profits is investing in property. Most entrepreneurs, amateur and top rankings can attest to that. The value of real estate increases proportionally to the rate of inflation. Real estate property is your hedge against inflation.
Determining how to make the best decision can be hard, the investment be based on price or/and location of the estate. Below is a comprehensive explanation to help you arrive at the best decision.
Your prime location changes depending on your investment plans. If you’re planning to rent your property, your property must be attractive for renters to keep showing up year after year. Renters are interested in a residential or condominium that have a store or business outlet where it’s near workplaces, trendy and convenient.
Decisions must be accurate and timely especially on how to make your property an affordable commodity in the future. Make decisions on how to make your investment profitable, quantify your goals by setting them as stages to accomplish, figure out how much you wanted to earn in a specific timeframe and aim to make the investment attractive to gain profit several years from now. Ask which locations are going to have the most business growth and which spots will continue to thrive. It should also be made clear if the property would be considered a prime location in the future.
Real estate industry expands as the Business Process Outsourcing industry expands. Current best investment as of now is condominiums as your investment offers shelter, a very basic need. More so, if your investment gives you an early return of investment.
Investing in condominiums offer you affordability as you can start making rental income as early as two months after. There are condo units where you need to pay 20% equity or down payment before having access to the property. Nowadays, developers even less or zero down payment with consideration to monthly payment. At latest, owners and developers offer rent-to-own programs that would all mean less money for you to shell out now. After turn over of the unit, you can then start placing an ad and attracting potential renters. An early move-in date means early monthly cash flow.
You can also avail of a pre-selling term, which means the turnover date is not within this year but four to five years from now. Prices of condominiums appreciate about 7 to 8% annually. By the time the property is turned over to you, your property would have around 30-40% price appreciation. And if you invest in luxury condos in prime areas, you can expect this amount to be significantly higher.
The potential profit in real estate is high. However it’s important to remember not to rush into a decision. Seek help or additional research that will help you arrive to the best decision.