6 Rules Guarantee Successful Real Estate Investment
Experts in the real estate market agree that there is no such thing as a failure to invest in real estate, and their argument is that the need for housing and office is not born today, and is not limited to a period of time, but is always present, but the volume of demand for the real estate commodity is what varies from time to time. And the other according to various and various factors and other supportive reasons, most notably real estate marketing, which some confuse with promotion.
And those who believe that those who knock on the doors of real estate investment must display a set of characteristics, including what comes under the practice of obtaining experience, or what comes under the rule of education and training in the framework of practice. Experts provide advice based on 6 guarantors rules for good results at minimum and in normal market conditions.
According to these experts, these six rules are limited to the necessity of investing in the region that the investor knows, whether he lives or works in it, as the investor becomes aware of the advantages of that region and the quality of real estate in it, and then invests in it, which reduces the risk. But experts also advise investing in the areas adjacent to the neighborhood in which he lives or who wants to invest, in addition to the necessity of investing in real estate with high specifications, because its value increases with time and does not decrease.
Experts also believe that it is important to go to investing in buildings because the demand for them increases with the passage of time. Experts do not forget to mention the necessity of investing in old real estate as long as it is renewed.
Individuals and companies
Investing in real estate is one of the most profitable types of investments, and it is one of the most common economic activities among people. The activity is not limited to professional trade alone, but a large segment of society can generate good incomes through real estate investment, and they are either free to work in real estate or they seek help Using it to generate additional income to their original income. However, real estate activity is one of the most complicated and overlapping activities among many variables and data, but it is in our Arab world in general and in the Arab Gulf in particular, one of the safest and most stable sectors.
This outcome did not come from a vacuum, as it is the fruit of a deep-rooted historical process. Therefore, the strength of demand in the real estate market is driven mainly by several factors, the most important of which is the large increase in population and the economic boom in the region, as well as the expansion of the area of cities supported by an urban renaissance. Comprehensive, and it may go beyond establishing entirely new cities as in the Emirates in general and Dubai in particular and on large areas of land.
All of these factors have led to increased confidence in the real estate sector and the investment (domestic and foreign) is directed to it tremendously from giant companies that enjoy huge capital, studies, advanced research and many advantages for development and operation.
Therefore, the new investor must realize that real estate investment is of two types, each of which resembles the second in everything except the (time) factor, it is divided into two parts:
The first (long-term) is aimed at owning lands and residential or commercial units that are expected to recover during the coming long years or owning existing and occupied real estate and generating a stable return either through leasing or operating it. The second is real estate investment (short-term) and aims to sell the real estate immediately after owning it Or after making improvements to it, which some call a form of investment speculation.
Therefore, the feasibility of real estate investment is based on hidden and hidden, perhaps the most prominent of which is experience, practice, price and location, real estate does not increase its value permanently, and the capital value of the real estate increases but not on a daily basis, and it is not strange to know that there is nothing that raises its price unlike other neighboring ones, because it is higher Quality or more space, but because its location is better than a second. And so on the rest of the reasons, including the condition of the property to be purchased with the specifications it includes in addition to its location.
Experts offer advice based on 6 guarantor rules for good results at minimum and in normal market conditions:
1- Investing in the place you work or live in: If you want to be a successful investor, you must be fully aware of what you are doing. If you have spent several years in a specific area, know that you are distinguished from others by knowing local real estate more than you think ..
You, even if you have a good idea of real estate in the surrounding areas, do not rise to the required level of knowledge and familiarity, and this is sufficient reason to move away from it and stick to your local area. Staying in your area gives you an opportunity to get to know the real estate market, and this is the most important factor to reduce your risk and increase your chances of making a profit.
2- Investing in new or promising urban areas: The old saying that the three rules for investing in real estate are (location, location, location) are correct. Also, if you can buy in promising areas, you are on a date with huge profits. But there are two types of great sites that have actually proven useful.
And those are about to occupy a great position, you can make profits in both cases, in the neighboring areas make sure to buy cheaper real estate, and in this way any money that will be spent on repairing it will return to you twice to three times the money that invested in it.
And when you buy a property that is not of great quality and in a special place, the advantage of the wonderful place supports you and raises the selling price once the property appears in an acceptable form.
Mostly, you will find that the owner of the property is aware of the course of things, but in the case of properties that are in very bad condition you can get a good deal. As for the promising neighboring areas, it is possible to invest in a group of real estate, either alone or in conjunction with a group of buyers that will improve the neighborhood, which will lead to an increase in prices that exceed your expectations sometimes.
3- Investing in existing buildings, but be very careful with regard to real estate that may suffer from structural defects as a result of use or time obsolescence, as well as expensive, and it is very important to stay away from investing in any property that suffers from fundamental problems, such as bad roof or bad exchange Or a corrupt electricity system, the cost of repairing these problems will eat up any profits you can make.
4- Cooperate with contractors and those with experience in the market, especially trusted craftsmen, as you always need their services and advice, provided that you carefully investigate your selection so that it reduces the cost price, and seek reliable workers who are working hard.