Most Important Factors For Real Estate Investment from Alina Mark's blog

Real estate investment is very has rapidly increased due to its high profit returns. However, while investing in real estate, you must be very keen. There are key areas to pay attention to. What’s the most important thing to look for in real estate?

While location is always a key consideration, there are numerous other considerations that help determine if an investment is right for you. Here’s a look at some of the most important things to consider if you plan to invest in the real estate market.

Property Location

Location is still king and continues to be the most important factor for profitability in International real estate investment. Proximity to amenities, green space, scenic views, and the neighbourhood status. Closeness to markets, warehouses, transport hubs, freeways, and tax-exempt areas play an important role in commercial property.

A key when considering property location is the mid- to- long term view regarding how the area is expected to evolve over the investment period. For example, today’s peaceful open land at the back of a residential building could someday become a noisy manufacturing facility, diminishing its value. Thoroughly review the ownership and intended usage of the immediate areas where you plan to invest. A way to collect information about what are the prospects of the vicinity of the property you’re considering is to contact public agencies.

Valuationof The Property

Property valuation is important for financing during the purchase, listing price, investment analysis, insuranceandtaxation. First, look at sales comparison approach. That is most comparable sales of properties with similar characteristics. The cost of the land is also important to consider. Finally, income approach based on expected cash inflows suitable for rentals is an important factor to consider as well.

Bottom Line

Real estate can help diversify your portfolio. Generally, international real estate investment has low correlation with other major asset classes so when stocks are down, real estate is often up. A real estate investment can also provide steady cash flow making it a sound investment. Just like any other investment, it’s important toconsider the factors listed above before deciding on anything.