People will always need a specially designed space to live, work, have fun or spend their time. So, when it comes to real estate investments, owning one or more properties is and always will be a good idea. From Eric Arnoux you can get the best idea now.
You do not have to have advanced studies in real estate or to spend a fortune on specialized courses and books to invest successfully in real estate. Many people without much experience went to the real estate investment field and managed to ensure a constant and satisfactory passive income, by simply analyzing the opportunities offered by the market. If you have thought about investing in this area to gain financial independence without any effort, here’s what you need to know:
Set your goals
Many of us have at least once thought of buying land, an apartment, a house, or any other space, which, subsequently, to rent or sell at possible market growth, but not knowing exactly what this entails, they got into a state of confusion and gave up. To avoid such a situation, you must create a well thought out strategy to avoid mistakes, pitfalls and mistakes that can cost very expensive:
- What kind of property are you looking for: an apartment, a house, a land, an office?
- Do you want your own space or one that you can rent or sell later?
- Once you’ve set the main goals, you’re ready to go.
- Do the financial analysis
The most important figures you need to know are:
- Net income (income or expenses)
- Cash flow (net income or payments for debt financing)
- Return on investment (cash flow or investment)
- Interest rate (net income or real estate price)
- Cash repayment (cash flow or investment)
- Total ROI (total return or total investment)
Investment refers to how much you invest in property. Debt financing is the eventual loan you need to purchase to buy the property. Total return means the cash flow, the accumulation of equity i.e. the equity earned from the tenants who pay the rents, appreciation and taxes. Once you understand these figures, you should have enough information to determine if the purchase of the property is appropriate for the financial purpose.
Set an advantageous time to make an investment
Here’s an example: a few years ago, I wanted to buy an apartment in a new residential complex, quite impressive, during a boom period. I entered the room that served as a place of information or sales, where, two very well-disposed ladies served their coffee and, of course, a cigarette. They put me to wait a few minutes outside until they finish their job and I can get inside.
After 15 minutes, the door finally opens and I am called into the room. With all my experience as a real estate broker, I’m starting to ask the right questions, to find out if I find the apartment I want: how much is it? How much is a square meter? On what floor do I find available apartments?
Answer received? Find all the information on the site. Something else
Yes, in the boom there are clients with real estate. Real estate agents become silver, they give up nothing, and they serve you poorly and do not give you time to explain. Developers build quickly and sell without having to negotiate. It is a sellers’ market, the buyers are many and adapt to the conditions, prices and the sellers. Buyers have little power because there are many and sellers have where to choose.