Although it is well known that investing in real estate is a profitable and low-risk business, it is also true that not all properties are equally profitable and that the fact of having bought a property is synonymous with obtaining high liquid income.
Alternative investments such as real estate are characterized by potential liquidity and low (and even negative) correlation with the markets, which means that real estate tends to rise when stocks fall. However, real estate may also require more attention from the investor in order to get the most out of their assets.
The idea is to calculate the profitability of a business and, based on this; choose whether or not it is viable to later develop strategies that help boost the return on investment (ROI) of the real estate, making the investment even more attractive. Let’s take a look at some of them:
1. Long-term rental
This is, perhaps, the most traditional method of obtaining income from real estate ownership, it is a classic that will never go out of style because it is practically a proven formula. In addition, it is an excellent way to obtain cash flow through a fixed monthly income that allows you to carry out small financial operations.
2. Proper maintenance of the property
Any property, be it land, house or apartment, requires care and proper maintenance, not doing so implies risking its value and reducing the possibility of renting it at a good price. Maintenance must be carried out periodically to keep it in optimal conditions and be attractive to potential tenants or buyers; otherwise, it is very likely a detriment to the profitability of the property.
3. Remodel / Redecorate
Tell me what you look like and I will tell you who you are and how much you cost, so it happens with real estate, the more attractive the property, the more people will be interested in it; it is about “making it visible” in front of the right eyes to achieve the objective, either to rent it or resell it.
Although the purchase or rental value is largely determined by its location, the property can also be more appreciated by internal improvements related to its appearance and functionality; an improvement in the distribution of spaces, a swimming pool, an attractive interior design, a garden or larger rooms, in general, a more attractive presentation will strengthen the property against the competition.
Although buying real estate for long-term rentals has many benefits, one drawback is the total time it will take for the return on the total investment that can last for years, however, once this occurs, the income that is generated can be for life (literally) and increase as capital gains allow.
4. Respect the available budget
This point is related to the previous two, it is important to anticipate all the expenses that will be made in the property and make a budget with them. This calculation will serve so that the purchase of real estate results in a successful business and there are no expenses that get out of the hands of the owner, having limits will help to have better control over the investment without altering the profitability of the property that had been previously calculated.
5. Invest in dollars
Depending on the area where they are located and the type of market they are aimed at, many properties are valued in dollars, which offers the possibility of making a safer investment. Some realtors even have the option to freeze the dollar price while the property is being settled, so the price becomes less dependent on fluctuations in the currency.
Agrawal Construction Company
Investment with ACC or Agrawal Construction Company, the preeminent real estate builder in Bhopal, will turn out an extraordinary deal for your lifetime. The Company has been at the cutting edge of constructing and developing sumptuous and first-rate homes for over 4 decades. Their virtuoso performance has today led Agarwal Construction Company to earn cachet and power of the next higher level. The company believes in rendering their dear customers with reasonably priced housing without finding a middle ground in the quality of construction. Their experience in constructing villas and township projects has been beyond compare.