There are several ways to enter the real estate business. Each of them requires a different type of initial investment and a certain level of knowledge in the field. The three most common businesses are investor, developer or builder.
Investors:
These are people who have good savings to buy, lease and resell any kind of property. They own their own home and are thinking of buying a second property, including a third. They are characterized by being very analytical and see opportunities that others miss.
These people buy real estate in countries where currency exchange favors negotiation. For example, in countries where the currency has lost value against the rise of the dollar, such as Colombia, they can find new homes at very good prices. Their investment can be short or medium term to obtain a visible valuation in time.
Developer
They are people or companies with great financial muscle. They buy land and develop real estate projects in the same place. Their business consists of transforming large portions of land into small properties. They are considered the developers of tomorrow’s cities. They require a futuristic vision to constantly propose changes through real estate development.
Builder
He is very attached to the developer. It is a highly profitable business that requires very specialized knowledge and a great team of designers and contractors to execute the work. The builder’s experience, process optimization, following a strict schedule and budget control will define the profits.
To start in this great business you must understand the market. That is why we recommend you to start as a real estate investor.
First steps as a real estate investor
All things in this world depreciate over time, except for three: jewelry, stocks and real estate. Big investors know that. They guarantee assets that will appreciate over time.
To get started in the real estate business you must research, learn, and know about the product you plan to acquire. Look for a property with an ideal price, ask about financing options and investigate what steps you need to take in the purchase process.
If you are abroad, you can take advantage of the real estate portals. There you will find all the information to make the purchase. You can compare multiple options, from the amenities of the project to the experience of the builder. For more tips and articles, please visit New Launch Condo Singapore to find out more.
Identify a good investment according to your objectives
First you need to understand what your goals are with this purchase. It can be a second home, it can be for a family member, vacation, a home to ensure retirement in the future, a property to resell when the property gets an interesting valuation after a few years, or the most common: to put the property for rent.
Secondly, you must have a minimum capital for the investment. Verify with Casa Propia Colombia the value of the initial quota and the percentage, in how many months the initial quota is divided before the deed and delivery of the property and which are the additional costs that are generated (like the expenses of deed and district taxes). Finally, ask what type of long-term financing you can use.
If you already have a saved capital and want to invest it in the property, you can make a down payment. That is, the first 30{0728d68cb2198b6d88310b8a6775ece8d37f059edbc54afb64e46dbd0be3c148} of the property value is reduced. Reducing the monthly payments.
Properties that generate value
When the property is yours, another good option is to resell it to find a profit differential between the purchase price and the sale price. The first tool to appraise the new value of the property is to make a commercial appraisal. These experts in appraisals make an analysis of the market, reviewing the state of the property and the characteristics of the property. Ultimately you can review the properties for sale in the sector and make your own assessment.
Another good strategy to buy a property with the aim of reselling is to buy off-plan. This guarantees that the value of the property increases as the project is built. The value of the properties in the price lists by launching is lower and increases according to the rhythm of sales. This way you can gain the valuation before the delivery.
One of the great advantages of investing in property, and especially in real estate, is the fact that it is an inheritable business. Most parents experience the uncertainty that the loss of a lifetime’s effort will be diluted. This effort can be inherited to their children or relatives since real estate is an asset that increases its value in time. For more important information, you can visit The Jovell Condo to learn more.