If you want to invest in real estate, you have to make a lot of decisions. Are you going for a new construction or an existing building? Does that existing building have to be ready to move in or do you want to renovate it (or have it renovated)? Would you prefer an apartment that already has a tenant in it so that you have a guaranteed return from day one? Bookkeepers, bank advisers, lawyers, real estate agents and civil-law notaries have answers to all your questions. But if we can give you one golden tip: invest smartly by choosing a so – called location. This is a place in (the edge of) a central city where you can live, work and shop in a pleasant way and where schools and public transport are within walking or cycling distance. Such locations yield much more than rural homes. After all, they are in high demand.
Don’t Make An Emotional Choice
A house on the street where you grew up? Undoubtedly it has an emotional value, but that is no longer profitable. If you want to invest in real estate, you can follow your gut feeling, but stay rational. You better keep the return in mind. Our tip: never buy an investment property where you would not want to live or work yourself. You can go for the Gombak apartment at this time now.
At Home Or Abroad?
Are you considering buying a home abroad? This has both advantages. The biggest advantage is that you can enjoy it yourself. In addition, you can ask a lot more on a monthly basis for a house on some Spanish Costa than for an apartment in your own country.
More Than Homes
Keep in mind that you cannot only invest in houses and Gombak apartment. There are also many other formulas that can yield a lot of return. Just think of holiday homes, student housing, hotel rooms, commercial real estate, parking spaces and so on.
What Does That Bring?
Anyone surfing the internet will immediately see very different figures when it comes to rental yields. A realistic percentage? About 3 to 4 percent return. That may not seem like a lot at first sight, but it is a multiple compared to the meager amount you get for the money that is parked in your savings account.
Do you want to invest in real estate, but don’t feel like all the administrative hassle and practical worries? Then you can also opt for a so-called rental service. In exchange for a certain percentage of the rental income, an expert takes care of everything: finding a tenant, drawing up the lease, drawing up the property description, following up on the payments, indexing the rents and so on. In this way, investing in real estate becomes really easy.
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