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. Here are some more things you need to do before you sign on the dotted line.
- Plan carefully
You need to draw up careful and comprehensive plans of all the expenses involved in buying a property as an investment before you start spending cash. Taxes, transfers, lawyers’ fees and registration costs are only a few hidden costs of which you might not be aware when you enter the market.
You might also want to use a rental company to act as middleman and manage your tenants, taking care of collecting rent and fixing breakages. These companies are yet another expense you should keep in consideration.
Remember, too, that you are responsible for repairs so you need to include that in your budget. Most things can be fixed quickly and inexpensively, but something like a burst geyser over a long weekend can be quite the expense. You’ll also need comprehensive insurance.
- Try to pay with cash as far as possible
While it might take up time to save up a cash deposit, at the least, it is better to pay as much of the house with cash as is possible. The more cash you use to buy the house, the less the bond and the lower the monthly bond repayments. The rent you’ll receive may be equal to a normal bond, so if you want to make a monthly profit, you need to lower the monthly bond repayment.
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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