Investment Property Receivables Need to Know
The most valuable information for those who are thinking of buying a house to invest in real estate is the gain from the investments. Calculating the monthly rental income correctly in order to make a profit from the house purchased makes the investment valuable.
Real estate is one of the investment tools that bring investors of every period. If you are considering buying a house for real estate investment, suggestions to be considered for a profitable process are waiting for you.
1) Examine the house deed!
This is a matter to be considered in residential areas not only for investment purposes but also for living. It is necessary to examine the legal status of the house. So is the house deed with condominium or floor easement? You should definitely learn the answers to these questions.
2) Attention to the condition of the land
The fact that the land of the house is in a water basin or an earthquake zone may cause problems in the future. Because the sale of the house in such a land would be difficult. When sold, its value may not reach the expected figures.
3) Be a good researcher
Investing in real estate requires being a good researcher. Regardless of what kind of real estate you invest in, the regions that will shine bright should take priority. Such regions always earn its investors. It is important to learn how the housing sales and rental values in the region you plan to invest have followed over the years.
4) Square meter of the house
The square meter of a house purchased for investment purposes is of course important. However, in recent years, there has been an interest especially in small square meters houses. These types of residences are bought and sold for investment purposes. It is even easier to find tenants.
5) Find out the dues
You should definitely learn the dues of the house you are planning to buy. Because it can be difficult to rent a house with a high dues.
6) Take into account the rent multiplier
The return of the money you give for the investment, ie the depreciation period is important. If you are getting back the amount you used for the investment in 20 years, this is not a lucrative investment. For this reason, you should choose homes that may have high rental income. So be sure to consider the rental multiplier. For this, you need to divide the annual rental income of the house by the sales price.
7) The location of the house is important
Pay attention to the location of the house and the development of the area where it is located. Choose houses that are open to development and have transportation possibilities. These types of houses both increase in value and have a high rental income.
What should those who want to rent out the house they bought for real estate investment and get rental income in a short time? The common feature of the houses that can be rented out at the best price in the shortest time is that they have the advantage of transportation… Another feature that is as effective as the ease of transportation is the presence of a hospital, school and park in its immediate vicinity.
8) Be careful when buying a house from model or soil!
Buying a house from soil or a model can provide an advantage in terms of price. Thus, when the project is completed, it has a certain value increase. However, you may experience that such investments carry risks and that the project is completed as you expect when it is completed.
9) Manage your budget right
You will buy a first-hand flat from a housing project, you are faced with many payment and campaign options. When deciding between options, do not act without a study based on your budget and how you plan your payments when you rent out the apartment you bought.
10) If they have social facilities …
Having various social facilities increases the value of a house. Nowadays, such features are in demand when buying housing. Social facilities, on the other hand, are valid for flats within the site or within the housing projects. It is important to have such an advantage when selling the house in the future.
Is it the right investment to buy a ready-made house?
So, what should you pay attention to when purchasing the “tenant ready flat for sale” in which the tenant resides and will continue to live due to the contract?
1) Remember that when a tenant resides in a home is purchased, all items in the tenancy agreement are transferred to the new landlord.
2) You can request from the person selling the house to receive the deposit amount received before the tenant for the rental.
3) Do not neglect to examine the lease agreement between the landlord and the current tenant from which you will buy the house. Be mindful of how the landlord’s and tenant’s rights are limited in the contract.
4) Get information from the landlord about whether the rent is paid regularly or not.
5) Be sure to meet the tenant who lives in the house you are going to buy. Consider whether there would be a suitable tenant for you too.