Do you know what the best way to diversify your portfolio is? It is by adding an investment in real estate. This can diversify your investment to a great extent, and at the same time, it can help you get a stable source of income in the form of rent. If you are just a beginner or don’t know much about real estate investments, this page is for you. On this page, you will find some essential tips for real estate investment. All these tips were shared by Mohsen Motamedian, who is a pioneer in the real estate industry.
The tips shared on this page are of great help, and they will help you clear the cloud about the investment in real estate. You will also be able to make profits if you go through these tips.
Basic Tips for Investing in Real Estate
In this section, you will find some basic tips for investing in real estate. After going through these expert tips shared by Max Motamedian, you will have more clarity about the investment in real estate. So, without wasting any time, let us see what Mohsen Motamedian has to say.
- Selection of Property Type
The first important thing is the selection of property. You need to understand if you are willing to invest in a residential or commercial property. If you are willing to invest in commercial property, you are looking for a warehouse, office space, manufacturing space, or something else. Have a clear vision about what type of property you would like to invest in.
- Type of Area & Amenities
The next thing to consider is the type of area. You can invest in rural, suburban, or urban areas. Usually, the sub-urban areas offer you better opportunities for real estate investment. Mohsen Motamedian says that capital growth is maximum in sub-urban areas.
- Don’t Buy at Market Peaks.
If you understand economics, you would understand that the market has different phases. Never invest in property at its peak. You must not hurry up into investment. Having a little knowledge about the economics and macro factors can help you time the investment.
- Wait for the Opportunity
This point is related to the last point, yet it is very different. You need to wait for the right opportunity. You may get a better deal in a bank auction or get a better deal during the stressed asset sales. Never miss such opportunities in the market.
- Emerging Neighborhoods
Mohsen Motamedian says that emerging neighborhoods have a better chance of capital growth. So, when looking for real estate investment, look at the type of neighborhood. Avoid investing in shady neighborhoods because the prices are stable in such areas. Instead, invest in good communities with prospects of growth.
- Mortgage Increases the Cost
Many people are confused between loans and full cash payments. Remember that the loans can increase the investment cost in the form of interest charges. Also, if you have capital handy but if your returns from the capital are higher than the interest rate, then it may make more sense to get a loan to buy property.
- Know the Hidden Costs
When you invest in real estate, Max Motamedian says that you must know the hidden cost. Sometimes, the registration charges or the brokerage may be hidden charges. Sometimes, you may have to spend on refurbishments or other funds. Find out all the information before investing, and don’t be scared of walking away from the deal.
- Check the Bills
Once you have finalized the property for purchase, please ensure that you check the due bills. The previous owner should have cleared all the bills. In some cases, the investor gets a shock when they see piled-up bills left pending by the previous owners.
- Maintenance Costs
Some properties have a maintenance cost associated with them. These expenses are recurring in nature, and they can impact your returns or the cost of ownership. So, please understand the maintenance cost, if any, associated with the real estate that you are buying.
- Network & Consult
Before you invest in real estate, Mohsen Motamedian says, you must network and consult the people. You can even seek consultation from real estate agents or consultants. You must also talk to neighbors and find out more information about the property you are investing in.
These were some of the tips that Max Motamedian shared regarding investments in real estate. If you go through these tips, then you will understand the main points that you should look at during the purchase of the property. It is better to avail services from a real estate agent like Max Motamedian, who can help you crack the market code. Remember that real estate market investments are like stock market investments. You can only make a profit after understanding the market, or you may end up with a loss.