Before investing in a new home, there are many factors to consider to avoid being in serious difficulty ..
1) Search and choose the right location. Location is one of the most important factors in making a good real estate investment. Choosing an area with medium and long-term revaluation plans, which have the necessary daily services, increases the chances of reselling or renting the house at a later time. It is also important to invest near our city to be able to manage all the necessary paperwork in person. In this sense, expanding or redeveloped neighborhoods, university areas and coastal areas become a safe asset when it comes to buying a property to rent.
2) Study the type of real estate investment properties in Curacao. If you want your real estate investment to be profitable, you should pay close attention to the existing supply and demand in the area where you decide to operate. Investing in residential housing is most productive in densely populated areas and coastal areas. However, the option not to be overlooked in large cities is to evaluate commercial properties that allow you to obtain a higher value with the lease. In both cases, you must adequately inform yourself about the community expenses of the property or any project expenses such as elevator change, roof waterproofing or interior / exterior painting of the building, as they will lower the initial benefit you intended to obtain with your real estate investment.
3) Check the physical and economic state of the house. A property in perfect condition fully furnished and with an adequate orientation that offers good brightness, greatly expands the space and the possibilities for sale or rent. However, other relevant factors such as the age of the house, the division of the meters, the useful meters and the distribution of the rooms must be taken into account, as the need for a renovation can reduce the expected earnings with the purchase. In addition to verifying the physical condition of the property, it is also necessary to go to the property register and request the "Simple Note" to verify that the property in question is free of economic charges or that it is not under seizure.
4) Long-term profitability and revaluation. Do you want to achieve short-term profitability after making a real estate investment? You are undoubtedly making a commercial mistake. It is normally difficult to notice an increase or revaluation of the property until at least five years after the purchase. However, we are in the best moment to obtain profitability through mortgage loans thanks to low interest rates, with the Euribor at an all-time low and the particularly favorable accessibility conditions proposed by banking entities. If you have the possibility to buy without financing, remember that here it is customary to negotiate between a 5% and an 8% discount on the sale price.
5) Diversify the real estate portfolio.
Profitability is inversely proportional to the risk you want to take. To minimize the risks of our investments, we need to have a portfolio with sufficiently diversified properties to avoid seeing a sharp decline in our finances. Therefore, a well-structured portfolio should include both homes that have a high probability of revaluation, and properties that have a high return on rent. In this way, a large global amortization of the real estate investments made is guaranteed.
6) Analyze market trends. It is essential to examine the trends and aspects of the real estate market that can affect the profitability of your investment. Asking for help from a real estate consultant will help you to know the average price of homes already sold, not those currently for sale, in the area you are interested in, the type of buyers or rent seekers interested and the conditions of the sector.
7) Acquire properties to rent. The rent is increasing. Insufficient income and the need for more freedom of movement by the younger sector of the population make renting the best option, the rental yield has increased by 4.4% and is expected to continue to grow and consolidate as the perfect scenario for investors, although a realignment of prices to more affordable figures is expected in the next 12 months, for at least in the residential area.
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