10 Tips for Successful Real Estate Property Investment. Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn’t mean that profits from property investments are hard to come by, especially in Haiti it is easier.
Even during a real estate market slowdown, profits can be made in Haiti. Here you will find the top ten tips that real estate investors apply to their property portfolio-building strategy to ensure success from their investments.
1) Research the curve – the concept of a property market cycle existing is not a myth it’s a fact and is generally accepted to be based on a price-income relationship. Check the recent historical price data for properties in the area you’re considering purchasing in and try to determine the overall feel in the market for prices currently. Are prices rising, are prices falling or have they reached a peak? You need to know where the curve of the property market cycle is in your preferred investment area.
2) Get ahead of the curve – as a basic rule of thumb, professional real estate property investors seek to buy ahead of the curve. If a market is rising they will try and target up-and-coming areas, areas that are close to locations that have peaked, and areas close to locations experiencing redevelopment or investment. These areas will most likely become ‘the next big thing’ and those who buy in before the trend will stand to make the most gains. As a market is stagnating or falling many successful investors target areas that enjoyed the best levels of growth, yields, and profits very early on in the previous cycle because these areas will most likely be the first areas to become profitable as the cycle begins turning towards positive once more. Follow us on Instagram @bestonehaiti for more information about developing areas.
3) Know your market – who are you buying property for? Are you buying to let to young executives, purchasing for renovation to resell to a family market, or purchasing jet to let real estate for short-term rental to holidaymakers? Think about your market before you make a purchase. Know what they look for in a property and ensure that is what you are going to be offering them
4) Think further afield – there are emerging real estate property markets around the world where countries’ economies are going from strength to strength, where a growing tourism sector is pushing up demand, or where constitutional legislation has been or is about to be changed to allow for foreign freehold ownership of property for example.
5) Purchase price – set yourself a budget that will realistically allow you to purchase what you’re looking for and profit from that purchase either through capital gains or rental yield.
6) Entry costs – research fees, charges, and all expenses you will incur when you buy your property – they differ from country to country. In Haiti for example you should add on an additional 9% at least of the purchase price for all fees, Know how much you will have to incur and factor this amount into your budget to avoid any nasty surprises and to ensure your investment can become profitable.
7) Capital growth potential – what factors point to the potential profitability of your real estate property investment? If you’re buying to let out are there any indications to suggest that demand for rental accommodation will remain strong, increase or even decline? Think about what you want to achieve from your investment and then research and find out whether your expectations are realistic.
8) Exit costs – if you sell your property investment for profit, will that render the investment profitless?
9) Profit margins – what levels of capital growth can you realistically gain on your property investment or how much rental income can you generate? Work out these facts and then work backward toward your initial budget to work out your potential profit margins. At all times you have to keep the bigger picture in mind to ensure that your real estate investment has good potential for profit.
10) Think long term – unless you’re buying property off plan and intending to flip it for resale and profit before completion you should view real estate investment as a long-term investment. Real estate is a slow-to-liquidate asset, cash tied up in property is not simple to free up. Take a long-term approach to your property portfolio and give your assets time to increase in value before cashing them in for profit.
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