The price of the property is one of the initial considerations when sourcing a real estate investment. As property prices have reduced significantly in many established markets worldwide, the mid-term return potentials enable greater scope when investing in the current market. The economic stability of emerging markets for investment is now more important than in recent years to protect against financial losses.
Researching the surrounding market will help to ensure the property is not over priced by comparison. If the property presents a higher price, consider the reasons why before discounting it immediately. There may be security features in place, such as guaranteed rental returns, guaranteed buy-back opportunities or other features such as furniture packages included.
If this is the case, consider the additional costs such as maintenance and advertising charges for placing the property onto the rental market, or the effort to find buyers in the resale market at the time to re-sell. If the more expensive property still does not present a viable investment option in its market, it may be wise to look into another development.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125