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How to invest in real estate and not just buy real estate

July 6, 2020

When investing in real estate, you need to do a market study.

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How to invest in real estate and not just buy real estateHow to invest in real estate and not just buy real estate

The opinions of the employees of s You are personal.


Do you think that Buy real estate is the same as invest in real estate? The real estate portal Properties.com announced in a statement what each consists of.

Leonardo González, real estate analyst at Propiedades.com, explains that a property can be used for residential purposes or as an investment vehicle.

The market comes first

When buying property as an investment vehicle rather than taking your interests and preferences into account, you should consider the needs of the market. According to Rocío Uribe, CEO of Quality Inmobiliaria Uribe, you need to make sure that the property:

  • I have a good location
  • Rely on nearby services and amenities
  • Be in good condition
  • The hotel is located in a colony with high added value

Another difference is that there are several factors that influence the purchase of a house or apartment, many of which are emotional. According to Rocío Uribe, the price per square meter should be a decisive factor when investing.

“It is important not to buy in the super fashionable colony or in an area where there is insufficient capital gain. Also make sure that the interaction between the cost per square meter and the price is not very high so that you can make a profit on the sale, ”said the expert.

On the other hand, if you invest in real estate, you need to do a market study. This is to ensure that someone is interested in renting or buying your property in the future.

“Mostly, a property is not rented or sold because the price is wrong and is above the region’s average. That is why the market study has to be carried out, ”explained Uribe.

As an investor, González says you should also consider adding a plus to offering bonds, promotions, and guarantees for the sale of your property.

“In this case, developers offer customer service for repairs or maintenance,” said the expert.

Indicators

On the other hand, Leonardo González said that you should consult a property market report when making an investment. In it you know the market prices and key indicators such as:

  • Increase in value
  • Time on Market (average time of a property on the market)
  • Gross rent profitability
  • Price to income
  • Price for rent

“A property as a fixed asset must generate returns. These are measured based on capital gains or gross rent profitability (RBA), ”commented the specialist.

Maintenance makes the difference

“We all know that beauty penetrates the eyes,” said Uribe. For this reason, you have to reserve money with your investment in order to maintain the property constantly.

Keep in mind that nobody will be interested in a property that has peeling walls, dampness, doors and windows in poor condition, or a garden that is neglected.

If you invest, you need to have a reserved money to maintain the property all the time / Image: Depositphotos.com

Investor profile

Rocío Uribe explained that the person who invests in real estate is usually someone who already has his own house or apartment.

He added that more and more young people are interested in buying property. Especially enterprising men between 30 and 40 years who buy real estate of three or four million pesos.

She also found that more and more women are investing in real estate. Their ages range from 35 to 50 years. They do this to have a second source of income and to achieve economic independence.