7 successful real estate investment tips for 2021
Real estate is among the safest markets for investment. It’s a perfect way for many to secure their future. Because the money you put in real estate never loses value, it’s become a very attractive field.
Despite the prevalence of real estate investment, not everyone can execute it properly. While all types of property are good for long term returns, not every type is suitable for short term returns.
To get the most profit from real estate there are certain strategies to keep in mind.
Successful Real Estate Investment Tips 2021
1- Know What You’re Going for in Real Estate Investment
There are several types of real estate and it’s important you do your market research before getting side-tracked. Your main choices for real estate include:
After deciding on which property type you want, find a strategic location to establish the said project. Of course, you should do this before hunting down offers, it helps you remain grounded in your purpose.
2- Don’t Over Do It
Rental properties are a great way for you to pay back your bonds. In fact, the buy-to-let is the best approach to leveraging long term returns. And while failure is near impossible with rental properties, buying more property for rental before you close your bonds is a very risky approach.
To make things safe and secure, you must move slowly. For any type of real estate, it’s always best to move on to new projects after finishing the payment process for your property.
3- Renovating Properties Gives Their Value a Boost
The interior of a residential property can make or break a deal. If you want to get the most out of an old property, doing renovation will help you earn the highest profit margin. Many people will overlook the location of a property or any downsides when faced with a beautiful interior.
And it won’t even cost much in comparison to the returns you’ll earn with it. Making a property look homely and warm should be your target. Make sure you also run basic maintenance around the house. Leaking faucets or light switches that don’t work can be the last straw for buyers.
According to research, kitchen renovations are your best deals. There’s a common saying in real estate that implies kitchens sell properties. And it’s true, make sure your focus on renovating the kitchen and giving it’s a cozy yet modern appeal.
4- Know the Market
You’ll find most of the tips on this list urge you to do your research. This is because research is what makes you a successful investor it’s the one step that takes you away from making an expensive mistake.
When you want to buy property, the first thing you should do is research the market in different geographic locations. You never know what opportunities you could find in different countries. But with studying the market you can leverage the opportunities in different countries and perhaps begin a successful investment portfolio.
For instance, real estate investment in Turkey is what’s hot right now. The average price per square meter for luxury property in Istanbul is $1,271. And as the biggest destination for tourists, students, and medical tourists; the market search for rental properties is extremely active.
Known for its facilitated services, many real estate companies in Turkey offer assistance for foreign buyers. At Al Huda we have a special package of after-sale services for our clients. These include managing your property in your absence, handling all the legal work, and leasing property on your behalf if you wish.
5- The Do’s and Dont’s of Rental Properties
Rental properties are the most popular form of investment in real estate. Rental fees are a good way to help you pay off your bonds and even cover maintenance fees for your property. In most cases it’s easy to manage rental properties, but there are a few things to look out for.
As a rule of thumb, you must have realistic expectations when it comes to how much returns you can make from renting properties. There’s a formula that you can use to estimate your gross profit from leasing:
- Multiply the monthly rent by 12!
- Divide the sum by the property value!
- Convert this value to percentage by multiplying by 100!
Many factors can influence the gross profit. And here, you’ll have to do your research or contact our consultants for more information.
In general, vacation property makes the most money. This is because they don’t work on an annual basis and short-term stays are charged at a higher fee. So, for this target real estate in tourist locations. Even better projects with local facilities. For example, you can own property in compounds with a spa and Turkish hammam in a tourist area.
There are several ways you can make your property more appealing for tourists.
You can also successfully get long-term lessees for a good return. Some tips to help you out with this include the following:
- Own property in luxury compounds
- Own property next to main transportation nodes
- Invest in property next to major projects such as the İstanbul Water Canal!
- Furnish your property!
6- Investing in Unfinished Projects
Investing in unfinished projects is one way you can make profit from real estate investment. While this is usually risky, you need to do your research on the construction company beforehand. Typically, at Al Huda Real Estate we only work with reputable construction companies. Ones who have a solid reputation for being punctual and delivering work on time.
Buying unfinished projects allows you to own property for extremely affordable prices. And once the project is finished you can resell the property for large returns.
7- Do Your Financing Right
Another tip for real estate investment that we constantly urge our clients to do is proper financing. Buying a house is a very big project and you need to make sure you don’t wind up bankrupt. So how should you go about this? Make sure you have a savings account with at least 3 months’ worth of living costs. This way you can finish your purchase without having to strain yourself financially.
Real estate investment is a perfect way of securing your future and the money you put in will always come back. While in the long run all property will give you decent returns, there are ways you can achieve better results from real estate investment. Most importantly, you should do you research. Research the type of property you want, the geographic location, and the market.
Before getting into the buying process, you should have had everything figured out when it comes to your goals. Similarly, plan your finances, accordingly, make sure you don’t overwhelm yourself throughout this process.
Secondly, if you’re considering rental properties make sure you invest in very strategic and convenient places. This way you can find lessees easier and also appropriately charge more for rent. As for unfinished projects, do your homework about the construction company. Is it a reliable one? Do they have existing projects? You want to put your money in the right project to avoid disappointment.
Contact Al Huda
For more information about real estate investment, please contact our consultants at Al Huda. We’ll give you all the information you need in a free online consultation.