Ali Ata: 4 Factors to Consider when Investing in a Real Estate Property
Real estate is a great investment, something that experts like Ali Ata have proven time and time again. But not all real estate properties are created equal in terms of their value as an investment. Some are simply better suited to the needs and goals of certain investors than others. For you to determine if an investment is ideal for you, do consider the following factors:
1. Potential returns
Total returns is the main reason you’re investing in the first place. Ask yourself what your goals are and how much you hope to earn from the property after a certain period. You can use tools—there are many available online—that will help you compute your potential earnings minus variables like the cost of your investment and your remaining balance.
2. Location
Your property’s address matters—a lot. This isn’t to say you should invest in any popular locale. If you can, choose an address that’s not within your vicinity. This strategy diversifies your portfolio and cushions your investments from risk. Other good places to invest in are those locations you plan on moving to in the future, as well as those that offer great opportunities for employment or business.
3. Property age
Don’t let the age of a property scare you away. Many old homes tend to be lower in price, while others are located in good spots. It can be tempting to get a pricier home, but remember that they can be hard to sell once you do decide to move away.
4. Rental demand
Some properties, especially in in-demand urban areas, can have impressive rental demand, therefore higher cash flow, but is offset by very high list prices. The best deals are addresses that are within your means but offer good returns. Since you’re likely to move to another state anyway, an expert like Ali Ata would recommend that you broaden your search and look beyond locations within your immediate area.
Real estate investment is a profitable endeavor, but only if you choose well. Carefully consider your options before you make your decision.
1. Potential returns
Total returns is the main reason you’re investing in the first place. Ask yourself what your goals are and how much you hope to earn from the property after a certain period. You can use tools—there are many available online—that will help you compute your potential earnings minus variables like the cost of your investment and your remaining balance.
2. Location
Your property’s address matters—a lot. This isn’t to say you should invest in any popular locale. If you can, choose an address that’s not within your vicinity. This strategy diversifies your portfolio and cushions your investments from risk. Other good places to invest in are those locations you plan on moving to in the future, as well as those that offer great opportunities for employment or business.
3. Property age
Don’t let the age of a property scare you away. Many old homes tend to be lower in price, while others are located in good spots. It can be tempting to get a pricier home, but remember that they can be hard to sell once you do decide to move away.
4. Rental demand
Some properties, especially in in-demand urban areas, can have impressive rental demand, therefore higher cash flow, but is offset by very high list prices. The best deals are addresses that are within your means but offer good returns. Since you’re likely to move to another state anyway, an expert like Ali Ata would recommend that you broaden your search and look beyond locations within your immediate area.
Real estate investment is a profitable endeavor, but only if you choose well. Carefully consider your options before you make your decision.
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