Up to 90% of millionaires in the world got rich because of real estate investing. This isn’t surprising since real estate, such as a house and lot for sale, is one of the most reliable forms of investment. But what to look for in an investment property?
In this article, we’ll provide practical tips and a comprehensive guide on what investors should consider before investing in real property. Everyone who has an income, including middle-class workers and professionals from Visayas and Mindanao, can make property investment work for them.
Understanding What to Look for in an Investment Property
When you spend your money to buy real estate and expect a financial return, then that is what you call an investment property. Your main objective is to generate passive income from your property.
There are many ways to earn from an investment property, including:
● Rental income, which you get from renting out your property; and,
● Future gains, which is the profit you earn when you put up your house and lot for sale.
How to Earn from Your Investment Property
There are many reasons why you should invest in real property. Some of the advantages you can get are passive income, appreciation of value, hedge against inflation, tax benefits, flexibility of usage, and return on investment.
If you are looking to purchase a property in Cebu, Davao, Iligan, CDO, or Butuan, you can’t go wrong if you know what to look for in an investment property. Johndorf Ventures, one of the best real estate firms in Cebu, can help you land affordable, quality housing in Visayas and Mindanao.
You have to exercise due diligence before you invest your hard-earned money. When what to look for in an investment property sounds like a vague question to a beginner investor, you can get some practical answers from this list.
LocationSo now, on to the question: What to look for in an investment property? Your best bet to getting your money’s worth, and getting a return on your investment is to look for a good location. Even the best real estate developer will tell you that the location of your investment property will make a difference in your investment.
If you want to rent out a property, your first consideration will be its strategic location. Are you looking for a house located near your place of work? Or perhaps you’d prefer to live close to key establishments in your area such as malls, banks, or schools for your kids.
MarketIf you are investing in real property that you want to rent out, make sure you know the profile of your target market. In this case, what to look for in an investment property should match the needs of your target market. If your investment property is in Visayas and Mindanao where call center investments abound, you should consider what these businesses or their workers need.
Future DevelopmentLook to the future if you want to know what makes a great property. Check out the ordinances passed by the local government units and you will know what to look for in an investment property. The zonal classifications will help you map out your property investments and see if they will be feasible in the future.
Now You Know What to Look for In an Investment Property, It’s Time to Seal that Deal
The smart approach is always to first understand what to look for in an investment property and why these factors matter to you. Only then should you start investing. That means you should have done your due diligence, including thorough research on your market and the future development in your chosen location.
Are you still in search of good property to put your money in? Check out the development projects of Johndorf Ventures and get the services of the best real estate developer in Cebu.