greenieS
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• 1. Document yourself
The first step you need to take to get started with any type of investment is documentation. To find out, you can read books, various guides, and blogs about other people's experiences. If you document yourself correctly in terms of investments in the real estate market, you will be able to reduce the risks as much as possible. Another source of documentation is people with experience in this field.
Real estate investing requires good organization. Once you manage to do it, it will take months of monitoring to reach the desired profit. Only by documenting yourself from the beginning can you avoid certain unpleasant situations.
• 2. Collaborate
If you do not have enough funds to buy a home that you believe will generate the desired profit, you can start a collaboration with people who have the same visions as you and understand how this sector works.
Regardless of the investment you are going to make, if you are associating with someone you need to choose people who know at least as well as you do this field.
• 3. Set financial goals
A real estate investment is a long-term business, so you need to know from the beginning what your financial expectations are and the motivation for such an investment. Once the goal is clear, the goal is well determined. A sum of money that is invested in a building, apartment or land has the role of valuing and leading to profit, by acquiring that property.
What are your financial goals? What do you expect from buying real estate? Will what you achieve by acquiring the property bring you closer to achieving your financial goals? The actions to be taken will depend on this data.
• 4. Don't forget about fees and commissions
It is necessary to take into account the taxes and commissions that must be paid when buying or selling a home.
There are many fees and commissions for the purchase and you need to consider this. These must be paid for when buying or selling a home, and must be discussed before the investment is actually made.
Profit tax, notary, VAT (if it is new housing), housing tax, insurance, bank fees, if you go for the credit option, all these are expenses that you have to calculate and that lead to a decrease in income .
• 5. Choose your tenants carefully
If you want to make real estate investments by buying a home and renting it out, you need to be very careful about the tenants you choose.
There are risks that you have to take, for example the tenants could destroy your property and you will find that at the end of the contract period you have to make serious investments to repair the damage caused. You also need to make sure that your monthly utility bills are paid without delay so as not to incur penalties.
To avoid possible inconvenience, you can make a well-established lease, which can be used if things do not go as you have agreed.
• 6. Choose your properties carefully
An essential step is to look at potential properties for sale. Your investment is long-term, so you should always think about the future.
As tempting as it may seem, the first offer should never be chosen, sometimes you have to look at many properties to make the right decision.
Ideally, you should invest in real estate in neighborhoods that offer people all the conditions they need. This will ensure that the investment will be profitable.
• 7. Study the price of the area
Before you make a real estate investment you need to find out if the home you are going to buy is cheaper or more expensive than the other offers and if it is worth setting up and selling it or it would be better to make a term investment. long and rent it. After this step you need to calculate how many months of rent you would pay off your real estate investment. Here you have to take into account the possible losses you would have if the tenant left, and you would not find another one for a few months.
Once you have all these figures, you will be able to say that you are making a calculated investment, assuming certain results and risks.
• 8. Get informed
Find out the history of the house, if any of the laws for restitution of the property of the former owners apply to it, what is the condition of the block, whether it has seismic risk or not, or if there are buildings with seismic risk around.
Does the house have a cadastre, tabulation? Are there any debts left by the former owner to various service providers?
All this information is extremely important and it is good to know it before making any kind of real estate investment.
• 9. Try to negotiate the price
Don't forget to negotiate because almost any property put up for sale comes with a negotiable price. More or less, but you will almost certainly be able to reduce the purchase price if you are determined to buy the home in question. There is also a limit. If, however, you consider the price to be decent, according to the calculations, then it is not necessary to force the negotiation.
• 10. Look at housing as a real estate investment
You need to keep in mind that you will not be staying in that home when you decide on one. The purpose of the purchase is to make a profit. Try to look at things as far away as possible and make sure you know from the start what the ultimate purpose of the property will be.
Also consider the possible investments you need to make when buying a home. It will sometimes be necessary to change the look of a property, so you need to consider this as well.
• 11. Avoid properties with major problems
Examine your home carefully before you buy it. It is often necessary to invest far too much money to be able to develop a decent property. Because of this, all previous calculations could be overturned.
• 12. Diversification
Remember to diversify your investment as much as possible so as to reduce your chances of losing money.
You can do this by investing in other areas such as other cities or even countries. By investing in many areas, you will be able to reduce any risk. At the same time, you will protect your portfolio against the volatility of local markets.
• 13. Determine the value of the investment
At the time of the decision to invest in real estate, the amount to be invested in the property must be determined as the final value of the investment. Various expenses adjacent to the actual investment must be taken into account, representing the payment of consulting services, a possible commission for concluding the transaction, the payment of notarial expenses occasioned by the purchase of the property, etc. It is important that the transaction falls within the set amount, no matter how tempting other more expensive properties may be, but that will impose higher costs.
• 14. Lending is a solution
Investing in real estate through mortgages can be a solution to focus on. Such an approach can be profitable, and if the monthly rate is 200 euros, the house being rented for 250 euros, then you will enjoy a profit. Although the amounts will not be so large, you will still enjoy a profit when you draw the line at the end of the year.
• 15. Home insurance
Home insurance will reduce your yield, but it is important in the long run. It is good to be prepared for any major problem: earthquake, fire, etc. Damage can be huge without insurance.
The first step you need to take to get started with any type of investment is documentation. To find out, you can read books, various guides, and blogs about other people's experiences. If you document yourself correctly in terms of investments in the real estate market, you will be able to reduce the risks as much as possible. Another source of documentation is people with experience in this field.
Real estate investing requires good organization. Once you manage to do it, it will take months of monitoring to reach the desired profit. Only by documenting yourself from the beginning can you avoid certain unpleasant situations.
• 2. Collaborate
If you do not have enough funds to buy a home that you believe will generate the desired profit, you can start a collaboration with people who have the same visions as you and understand how this sector works.
Regardless of the investment you are going to make, if you are associating with someone you need to choose people who know at least as well as you do this field.
• 3. Set financial goals
A real estate investment is a long-term business, so you need to know from the beginning what your financial expectations are and the motivation for such an investment. Once the goal is clear, the goal is well determined. A sum of money that is invested in a building, apartment or land has the role of valuing and leading to profit, by acquiring that property.
What are your financial goals? What do you expect from buying real estate? Will what you achieve by acquiring the property bring you closer to achieving your financial goals? The actions to be taken will depend on this data.
• 4. Don't forget about fees and commissions
It is necessary to take into account the taxes and commissions that must be paid when buying or selling a home.
There are many fees and commissions for the purchase and you need to consider this. These must be paid for when buying or selling a home, and must be discussed before the investment is actually made.
Profit tax, notary, VAT (if it is new housing), housing tax, insurance, bank fees, if you go for the credit option, all these are expenses that you have to calculate and that lead to a decrease in income .
• 5. Choose your tenants carefully
If you want to make real estate investments by buying a home and renting it out, you need to be very careful about the tenants you choose.
There are risks that you have to take, for example the tenants could destroy your property and you will find that at the end of the contract period you have to make serious investments to repair the damage caused. You also need to make sure that your monthly utility bills are paid without delay so as not to incur penalties.
To avoid possible inconvenience, you can make a well-established lease, which can be used if things do not go as you have agreed.
• 6. Choose your properties carefully
An essential step is to look at potential properties for sale. Your investment is long-term, so you should always think about the future.
As tempting as it may seem, the first offer should never be chosen, sometimes you have to look at many properties to make the right decision.
Ideally, you should invest in real estate in neighborhoods that offer people all the conditions they need. This will ensure that the investment will be profitable.
• 7. Study the price of the area
Before you make a real estate investment you need to find out if the home you are going to buy is cheaper or more expensive than the other offers and if it is worth setting up and selling it or it would be better to make a term investment. long and rent it. After this step you need to calculate how many months of rent you would pay off your real estate investment. Here you have to take into account the possible losses you would have if the tenant left, and you would not find another one for a few months.
Once you have all these figures, you will be able to say that you are making a calculated investment, assuming certain results and risks.
• 8. Get informed
Find out the history of the house, if any of the laws for restitution of the property of the former owners apply to it, what is the condition of the block, whether it has seismic risk or not, or if there are buildings with seismic risk around.
Does the house have a cadastre, tabulation? Are there any debts left by the former owner to various service providers?
All this information is extremely important and it is good to know it before making any kind of real estate investment.
• 9. Try to negotiate the price
Don't forget to negotiate because almost any property put up for sale comes with a negotiable price. More or less, but you will almost certainly be able to reduce the purchase price if you are determined to buy the home in question. There is also a limit. If, however, you consider the price to be decent, according to the calculations, then it is not necessary to force the negotiation.
• 10. Look at housing as a real estate investment
You need to keep in mind that you will not be staying in that home when you decide on one. The purpose of the purchase is to make a profit. Try to look at things as far away as possible and make sure you know from the start what the ultimate purpose of the property will be.
Also consider the possible investments you need to make when buying a home. It will sometimes be necessary to change the look of a property, so you need to consider this as well.
• 11. Avoid properties with major problems
Examine your home carefully before you buy it. It is often necessary to invest far too much money to be able to develop a decent property. Because of this, all previous calculations could be overturned.
• 12. Diversification
Remember to diversify your investment as much as possible so as to reduce your chances of losing money.
You can do this by investing in other areas such as other cities or even countries. By investing in many areas, you will be able to reduce any risk. At the same time, you will protect your portfolio against the volatility of local markets.
• 13. Determine the value of the investment
At the time of the decision to invest in real estate, the amount to be invested in the property must be determined as the final value of the investment. Various expenses adjacent to the actual investment must be taken into account, representing the payment of consulting services, a possible commission for concluding the transaction, the payment of notarial expenses occasioned by the purchase of the property, etc. It is important that the transaction falls within the set amount, no matter how tempting other more expensive properties may be, but that will impose higher costs.
• 14. Lending is a solution
Investing in real estate through mortgages can be a solution to focus on. Such an approach can be profitable, and if the monthly rate is 200 euros, the house being rented for 250 euros, then you will enjoy a profit. Although the amounts will not be so large, you will still enjoy a profit when you draw the line at the end of the year.
• 15. Home insurance
Home insurance will reduce your yield, but it is important in the long run. It is good to be prepared for any major problem: earthquake, fire, etc. Damage can be huge without insurance.
