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Buying Guide Tips&Advice

How to Invest in Real Estate?

Real estate ownership and buying can be an investment strategy that is both rewarding and profitable. Contrary to bond or stock investors, potential real estate investors can utilize leverage to purchase a house by paying a percentage of the price in advance and then paying off the balance, and interest in the course of time.

While a conventional mortgage typically calls for a 20% to 25 percent deposit, there are certain instances it is possible that a five percent down payment is enough to buy the entire property. The ability to manage the asset from the moment that documents are signed empowers real property flippers as well as landlords, who may then borrow loans on second houses to pay down payments for additional properties. There are 3 ways that investors can earn money from real property.

1- Rental Properties 

Buying rental properties is a great investment approach. It helps you maximize your profit by the time your property’s value soared which takes years. In the meantime, you can lease your apartment to long-term tenants. 

Here’s how you can calculate your rental returns

To calculate your gross profit from rental returns: 
  • Multiply the rent by 12
  • Divide the sum you get by the property value
  • Multiply the answer by 100

And that would be the profit in percent you can generate from investing in rental properties. 

This approach is safe because it provides a consistent source of income for you. But you should keep in mind the aspects of renovation and maintenance when switching tenants.

How to maximize profit from rental properties? 

Investing in properties right next to the main transportation node is key to increasing rent prices. Likewise is investing near touristic locations and commercial centers.

The more facilities a project provides the higher the rent can be extended.

We offer services at Property Pluss that include the management of rental properties that belong to our clients. So if you’re away on a business trip, and through a power attorney, you can allocate a member of our team to handle all your rental responsibilities.

2- Projects Under Construction 

Property Plus exclusively works with projects developed by reliable and punctual construction companies. We seek only construction firms that deliver projects in time with minor to no delay.

Why are we scrupulous with our unfinished projects? Because we want to give you the opportunity to safely invest in this strategy. 

Buying real estate that’s under construction will come at very reduced prices. The earlier you buy your property the cheaper it will be. And by the date of delivery, you would have secured yourself a large profit margin and can resell your property for short-term prices. 

You can also renovate the property and furnish it for an even bigger profit. Interior design is a key element to how fast a property resells. It will also raise the price of your property by large. 

3- Luxury Property Near Commercial Projects 

Investing in commercial projects that are under construction is your ticket to quick profits. Until the project is delivered, such as a mall, a metro station, a project that’ll become a landmark, and so on; the prices in the region won’t skyrocket. So you can take advantage of this and invest in property that’s adjacent to it now before it’s ready. Because by then, real estate in the region will swell massively. 

The more luxurious the property you’re investing in the higher the profit margin.