Real Estate Investing: What Do I Need to Know?

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Among Brazilians, the most common form of investment is the purchase of real estate. This behavior is noticed both in people who have a small equity and in large investors. In other words, everyone has the same dream: to have an asset in the real estate market.

In fact, buying a property is a good way to spend your money. However, as with any type of investment, you need to be careful before closing a deal. If you want to inject capital into the real estate industry without any nasty surprises, this article will help you.

Let’s go to some valuable tips!

See the location of the property

Before deciding to purchase a property, check the region where it is located. You will likely pay a lower price for a home further away from the city center. However, it will be necessary to make a precise assessment of this alternative. For this, it is essential to visit the region to see the real conditions of the locality up close.

Doing this is important because you will have the opportunity to talk with local residents, visit the public agencies that manage the street and get your own impressions. Want to know what to consider for this inspection?

You can ask about the presence of the public authorities in the place when talking to the property’s neighbors. Check if the place has garbage collection, water supply, sewage treatment and street cleaning.

Another essential item to be evaluated is: when the rainy season arrives, does the place usually have floods? It seems like an exaggeration to ask this question, but even asphalted places with no rivers nearby deal with this problem.

Then, visit the public agencies that manage the region, try to find out if there are any investment projects in the works for the place. Also, talk about the pace of growth in the location and the profile of the people who live there.

If the public official indicates that the region is expanding and that there are municipal plans to carry out improvement works, you may be facing a real estate “dark horse” — that is, a neighborhood that will increase in value over time.

On the other hand, if you decide to buy a property in a more upscale location, the investment will be greater. However, the certainty that you will acquire a well-located asset, in a place with a good infrastructure and highly valued, takes no worries.

Invest in land

Some people “turn up their noses” when thinking about the possibility of buying land with no built-up area. However, this viewpoint can overshadow a good deal. Given the growth of many Brazilian cities, experienced investors decide to buy land around these metropolises.

After a few years, when the region develops, they manage to sell them for a value much higher than the purchase price. Another interesting aspect to be considered when purchasing a land is the commercial or residential appeal of the region.

If you notice the construction of buildings, condominiums, resorts and corporate offices nearby, for example, this could be a sign that the empty lots in the area will soon be purchased.

In those regions with some specific vocation and in expansion, it is worth investing in flooded land, with swamps or unevenness. Although they are of no value in the eyes of the average person, they are acquired by companies that have the resources to build in these places.

On the other hand, this tip does not apply to land located in regions that do not fit the profile described in the previous paragraph. On the contrary: normally, in other locations, lots with unfavorable characteristics are devalued.

After choosing the land, it is worth following the same guidelines given in the topic on real estate before closing the deal.

Build for rent

Rent will always be a good investment in real estate. After all, new families will be formed every day, young people decide to live alone, students and professionals want to live close to college or work and all these people will always be looking for a house to rent.

Usually, the search for houses to rent is quite big — both in big cities and in small towns. Thus, investors decide to build one or more properties to earn extra income from their lease.

If you want to get into this field, an important point to be considered is the law of supply and demand in the region where you intend to build, the profile of the residents and the style of housing found there. With this information, it will be easier to build a property that will attract people’s attention.

To raise capital to build more than one dwelling, some decide to buy land with space to build a small building with several apartments. When the first residences are finished, they are available for lease — with the money generated by the rents, it is possible to finish the work in the remaining apartments.

In addition to the residential branch, there are others that can be a good option for building and renting, such as commercial rooms, flats, sheds, stores, vacation homes and inns.

Analyze used properties

Although little remembered, used properties are an excellent alternative for investment in real estate. However, with a little patience and caution it is possible to find, in real estate or classifieds, well located homes, preserved and forgotten by buyers.

This fact can help you get a good deal, as the amount paid when buying a used property that has been for sale for a long time may be less than what is needed to purchase land and build a new home.

Even if you need to do some renovations to the house, maybe its location makes it all worthwhile. After all, the amount charged for rent in a more expensive place will soon cover repair expenses.

Therefore, following our tips you will be able to invest your money well. Remember: buying a property is a lifetime asset. Earning money from it can be a bonus that you will happily enjoy.

Did you like to know better how to invest in real estate? How about understanding this subject better with the help of real estate experts? Please contact us and learn how we can help you.