Despite the global health crisis caused by COVID-19, investing in apartments for rent out. This is one of the most profitable and safest ways to generate permanent passive income without spending too much on maintenance.
The real estate industry has reacted better to the collateral effects of the pandemic. Although property sales fell by a significant percentage during 2020, the market is returning to the positive numbers that we were used to.
Tips for investing in apartments
If you are thinking of investing in apartments for rent (and not in houses). The first thing you should do is analyze some important points about the alternatives and facilities offered by the real estate market in the post-pandemic context:
1. Attention to market trends
The prolonged mandatory confinement of the last year has been a major change in our lives and had an impact on the housing market.
One of the signs of this has been the change in buyers’ interests.
Today, the focus is on homes with large and flexible spaces, which allow the implementation of the home office or homeschooling in the project.
2. Buy in green and white
An excellent alternative to optimize the purchase of investment apartments is to take advantage of the promotions. That real estate agencies offer when buying in green or white.
This means the purchase of apartments before the works are complete. So that investors can access exceptionally reduced prices and, in addition. It allows them to earn the capital gain generated between the date of the contract and the delivery of the finished project.
3. Calculate additional expenses
Another key aspect that we cannot forget when investing in apartments for rent is calculating our budget.
To do it correctly it is very important to also consider additional expenses. Such as registration with the Real Estate Registrar, property maintenance, or insurance to be hired.
4. Analyze the capital gains of the place
The long-term profitability of our department is determined by the capital gain of the home and the environment in which it is located.
One of the advantages of investing in apartments is that the projects are usually located in a sector of broad growth and expansion to offer its residents the best conditions.
5. Seek advice
Finally, real estate investment requires that we know well the current market outlook.
Having the specialized advice of professionals in the area is also a great help to boost your earnings. At Easy Investment, we offer complete advice to help you invest in residential apartments for rent.
Learn more about our service and receive the guidance you need to find the best investment options in the real estate property of Discovery Gardens Islamabad.
What should you know to buy an apartment in installments?
When buying an apartment in installments, the most viable way is a mortgage loan and pay monthly depending on our ability to pay.
In addition, at this time interest rates are historically low – in March they were set at 2.31% – and there is a wide offer of all types of properties.
Steps to purchase apartments in installments
Before requesting the loan for the purchase of apartments in installments. We must advise ourselves and consider some aspects:
Look for alternatives
It is the first in any guide that teaches how to buy an apartment in installments.
We must quote and compare various options, taking into account the factors that determine the viability of the investment. Such as location, connectivity, security, service equipment, and infrastructure in the area and, very importantly, the endowment and quality of the condominium.
Reserve the property
Once we decide on a property, we proceed to reserve it. This implies signing a promise of the sale in which the delivery and payment conditions are established.
At this point. It is important to keep in mind that banks usually lend a maximum of 80% of the total value of the property. So we must have 20%, which is usually the initial foot or fee with which we reserve and sign the promise to buy and sell.
Financing for apartments
As we are going to buy an apartment in installments with mortgage credit, we have to evaluate several alternatives and opt for the most convenient conditions.
The analysis involves the interest rate (fixed, variable, or mixed), the payment and refinancing conditions, administrative expenses, etc.
Pay foot in installments
It should be noted that a large part of the real estate companies allows us to pay the initial installment in different dividends and in a period that, normally, is the same that is missing to finalize the construction work (purchase modalities in green or white.
This is the most important thing in this type of real estate operation. However, it never hurts to seek expert advice – such as Easy Investment – to teach us how to buy an apartment in installments without risks and with high profitability rates.
What are the best sectors to invest in apartments?
Investing in apartments for rent in the Metropolitan Region is a lucrative and safe business model, whose number of players has doubled in recent years.
When thinking about entering it. We must consider profitability, understood as the percentage relationship between the rental value and the purchase price and maintenance expenses, taxes, among other variables.
The factors involved before investing
It is worth evaluating the advisability of investing in apartments for rent, considering other important factors such as projected capital gains.
Another tip for investing in apartments is to study the real estate development of the neighborhood. The projected rental demand very well, as this significantly affects the price of rents.
With the above, the possibilities of generating profitability increase because, as in any investment. There are risks that we need to reduce. At Regal Marketing we have everything you need to make the dream of financial freedom possible.