Real estate is generally accepted as being a solid investment. Yet in the light of the past few years’ global economic slump, many people are asking if it still is a good way to invest your hard-earned money.
The answer is a resounding yes! Real estate is still one of the safest and most secure ways of investing money. Land is one of Earth’s limited resources – basically they are not making any more land; what we have is what we’ve got.
This means that as population numbers increase, living space will become more sought after. When the demand for a resource increases, so does it value and the price of the resource. So in short: investing in property will always be a good investment. While it is the kind of investment that requires attention (you have to ensure that the property is maintained and kept in a good condition), it more than makes up for this in return on investment.
There are a few tips you need to keep in mind when choosing the right property in which to invest.
- Small steps
The golden rule of investment is to start small and grow from there. Often, a good way is to buy a property where you can have a tenant while living on the property yourself. This means that you can use the rental income to save up to invest in a second property – so make sure that you can afford the monthly bond repayment yourself without needing to dip into your rental income.
Once you have bought a second property, managing the tenants might become more challenging. You can choose to soldier on yourself and make more profit, appoint a landlord to live in the second property and manage on your behalf, or employs a rental agency to take care of the tenants.
Another way of growing your property investment is to buy small and save the rent, and then sell that property and use the profit along with the amount you saved from the tenant’s rent to buy a bigger property, and start the cycle again.
- Do your homework
Before you sign on the dotted line, check the small print of the deed and the property’s location, etc. very carefully. Check the zoning of the area, whether any major road or transport developments are planned for the future, as well as the nature of the adjacent neighbourhoods – suburbs tend to expand and the neighbourhood a few kilometres away might be across the street from your property in a few years.
Consider all the factors to determine whether the value of the property will increase or be hampered by the urban planning.
In Part 2 we’ll look at some more important things to consider before you sign on the dotted line!
Ready to join the world of real estate investment? We have just the property for you. Mobus Properties is the proud developer of such real estate gems as Richfield Lifestyle Estate, and Phoenix Villas in Accra, to name a few. For more on these and other flagship properties, visit www.mobusproperty.com today!
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