Originally posted on April 14, 2020 @ 3:21 pm
Real Estate Investment is a lucrative industry which continues to flourish over the years. This venture can give you more chances of acquiring a stable source of wealth in the long run. This may be the reason why hundreds of property deals are closed every week. In a month’s time, roughly a thousand activities take place on mortgage alone. For an industry which may have lesser tendencies to fail, it is a wise choice to competitively position your business in this area.
The Challenges of Today
Global recessions, changes in government leadership and political factors can shape the face of real estate. It is simply the business’s nature to go with the country’s general issues. The following are some trends which you need to consider, before making a crucial investment decision:
- Increased Competition
With hundreds of finalised agreements per week comes a challenge for sellers – they need to make their properties stand out. Competition is actually encouraged by legislators. This is to protect consumers and give them more freedom to choose. The challenge for sellers would then rest on ensuring their investments’ ability to become the top choice among tenants.
- Expensive Raw Materials
Construction of raw materials and fixtures and fittings are costly these days. This makes property maintenance even tougher for land owners. The materials’ expenses may be deducted from the supposed earnings of selling a property or renting it out. This means you have to be more prudent when it comes to planning your estate’s maintenance.
Choose to buy sturdy and durable materials. This may be a wiser choice as compared to buying cheaper materials, which require numerous replacements in a year, negating the extra expense.
- Challenges in Venture Returns
The abundance of Real Estate Investment deals indicates a buyer’s market. In earlier periods of property investment, most land owners can seize the opportunity to keep acquiring land. The boom of this industry was capitalised due to the business’s newness. The difference of today lies with the trend of lower deals, which lessens the tendency of owners to break even with their payments. If the habit of lower priced properties continues as a trend, then it will take longer for investors to get their money’s worth.
How to Position Yourself
The real estate industry is nevertheless still a viable pursuit. As long as you have ownership of a space, the possibilities of earning out of it are endless. Some tips to maximize your property ventures are:
- Location Upgrades
Go beyond the obvious prospects of considering ideally located schools, hospitals and other crucial spots. While the mentioned items are crucial givens, the next step for your investment is to scope out possible developments which may happen in your vicinity. Check if tourism or other industries will be on the rise in your area. A lucrative forecast can further boost the value of your property for selling or renting.
- Your Target Market
Every locality has a niche. Some areas are good for the night life, while some would be great for commerce. Upon knowing property’s category, the best-suited tenants for you to target will become apparent. This way, you may have better chances to negotiate a good price, depending on your target occupants’ lifestyle.
The current trend of Real Estate Investment and the updated ways to position your property can give you the extra edge in the marketplace. You need to consider the level of risks which you can take and the extent of how much you can bet for your target tenants. Remember, with high risks come high returns.