It takes lots of considerations, before purchasing a real estate property. Given two situations:
A. Buying a property to rent out to tenants;
B. Buying a property as an owner-occupier.
As such, here are the factors needed before acquiring a real estate property:
- Cost of the Property – Ensure to work out on a budget that fits on hand, whether paying in cash or in a form of a loan.
- Target Market of the Property – search ideal property that will influence ideals tenants like students, professionals, or families with children.
- Location of The Property – The location of the property should be in demand. Bear in mind that the ultimate goal of this investment is to generate profit.
- Physical Condition of the Property – choose a property that are good condition. Ensure the materials and construction strictly adhere to the standards.
- Property Management – if the property is intended for rent-out, decide whether to manage it or have it manage by a property management company. Remember, having a property manager will entail additional cost however it can save the owner’s time.