It’s easy to get confused when trying to start investing, so here are 3 questions to ask yourself in order to make a more well-informed decision:
Did I do enough research?
“Never invest in something you don’t understand” – Warren Buffet Understanding the fundamentals of an industry is essential for any investment. These are some information you should be looking into Real Estate:
– The Type of Clientelle – Developer Backgrounds – Property Transactions History – Typical Return on Investment – Market Performace of Communities – Popular Developments
A priority to learn about is the company you’ll be investing with because the team behind your investment decisions can either make or break you.
Do I buy Offplan or Ready Properties?
“Real Estate provides the highest returns, the greatest values, and the least risk” – Armstrong Williams
Every individual has unique financial capacities and risk appetites. Therefore, evaluating what will work for you before investing is an integral aspect that will dictate your Investment’s success.
Should you go for a more flexible option or a more assured one? Points to consider:
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Pros of buying off-plan
– Priced significantly less than ready properties. – Higher probability of the property increasing in value – Smaller down payment – Attractive payment plans Cons of buying off-plan – The property might be valued for less after handover depending on the market condition – Delays or cancellations from the developer’s side
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Pros of buying ready property
– In a buyer’s market, it might be possible to buy a property at a significant discount because of the ability to bargain. – Immediate rental return – Proven rental yields on a property Cons of buying ready property – Higher upfront cost – Unpredictable turnaround time, especially when investing with a mortgage
What will be my profit?
“90% of all millionaires become so through owning Real Estate” – Andrew Carnegie For a more accurate calculation, contact a Powerhouse Investment Advisor. There’s nothing to lose when you get in touch. Investing is definitely not easy, but you don’t have to do it alone. Be on the safer side and experience the difference of having a professional guide you through your investment strategy.