Investing in real estate is one of the most popular ways to make money. Investing in properties can be very tricky without proper knowledge of the market and different properties, but it’s still a great way to build wealth. There are many different things that you need to consider when choosing the property that best suits your needs. LuxuryProperty.ae – a leading Real Estate Brokerage in Dubai, highlights some important factors that will help you decide with ease!
Location
The location of the property is crucial because it affects its value. If you’re looking for a quick sale, then buying a property in an area that has been suffering from long periods of depreciation is probably not the best option. On the other hand, if you plan on keeping your property for many years and you want to increase its value over time, then an area with little competition might be better.
Neighborhoods near universities and hospitals usually do really well because people like to live near education and health services. Therefore, investing around such areas will increase the resale value of the property in time. You can also check real estate agency websites to see which areas are doing well and which ones aren’t. You can check the value of your property periodically, especially if you’re keeping it as an investment or as an asset for future use.
When choosing a location, look at the following:
- The proximity to public transportation. Can you get around without driving?
- How easy is it to access other places/areas? Are there shops nearby?
- Is the area growing in popularity with a high economic growth rate?
These factors will definitely affect its resale value in time.
Asking Price
Another important factor to consider when choosing a real estate investment is the asking price of the property; this is also essential if you’re applying for a home loan. The asking price of the property affects its value and home loans. Remember to choose a property with an affordable asking price, because this will affect how much finance you are willing to get.
Saleability is another thing that you need to consider when choosing your investment property, meaning how easy it would be for someone else to buy the same real estate in the future. If it’s difficult or not worth buying in comparison with something similar, then that means there might be issues with financing or maybe no one wants to live in that neighborhood/area anymore. On the other hand, if there are more properties on sale than buyers available, then you should probably invest in markets like these because their resale values increase over time.
Size Matters
Choosing a property that is too small for your needs will affect the resale value of it in time because buyers might choose something bigger. Also, if you have a growing family and you need extra space to live comfortably, then go ahead and buy a larger house because this will add to the resale value of it as well.
This is important as in Singapore, for any housing type, once there are more than 3 similar sizes of unsold units in the market, then it is deemed to be over-supplied, and thus the price declines. This means that you’ll get less money if you want to sell or rent out your property – so buying a bigger house will help avoid this problem!
Fixtures and Fittings
Of course, fixtures and fittings are important when choosing a property. You’ll have to pay for these items separately if the property doesn’t have them, so it’s always better to ask what you’re getting and their condition. If there is any problem with fixtures or fittings, then this could affect its value in the long term.
However, one thing that you should keep in mind is that choosing a property that needs too many repairs and renovations will affect its resale value. Buying something worth renovating can be a great way to get rid of debt quickly, but only do so if you really need it. Otherwise, don’t go for properties with lots of problems!
Comfortability
Lastly, consider how comfortable you feel in the property when you invest in it. You’ll be living there after all! If you plan on staying for a long time, it’s better to invest in a bigger home with additional features; this way, you’ll be able to sell it at a higher price as well.
On the other hand, if you don’t know what your future holds and your plans are flexible, then it might be better to keep things simple with a smaller house or apartment that costs less.
Choosing the right property to invest in is tricky. There are many factors that you need to consider before making a decision, but hopefully, these tips will help you decide which real estate best suits your needs.