You are on page 1of 3

Real estate is not like operating a retail store where you buy something wholesale for $10 and

sell it for $20.

For longer-term real estate investments, fixed mortgages are better because they allow you to plan your cash flow accordi

For rental properties or investment real estate, make sure you are also leveraging all of the tax benefits of depreciation an

Know beforehand if you plan on making money off your real estate via rent or capital gains. Areas where a lot of immigrants live are great for making money off of rent. Areas where a lot of settled down, rich people live, on the other hand, is great for making money off of capital gain

We, as potential investor, always need to ask the following questions first: Whom would I like to have as tenant? Which kind of future tenant do I have in mind as my partner, who shall pay the major part of the property for me in Criteria which we could choose from 1. Singles in well-paid job positions 2. Young couples both working in frequently jobs 3. Families with 1-2 kids good income bracket 4. Tenants for a short time in furnished apartments 5. Well-off double-wage-earners with secure jobs, senior executive positions 6. Weekend-home-drivers 7. Older couples retired 8. Tenants with / without pets 9. Extended families 10. Tenants with academic background Check with City Planning.

So what makes a location good? 1. Demand if the real estate market in that location is in high demand, it will increase the value of properties the 2. Schools Studies have shown that real estate in close proximity to schools has greater value than those that ar 3. Urban Areas this is inextricably linked to demand, since urban areas are more populous, there will be more co 4. Quality of Neighborhood these include how good municipal services are, how safe the area is, and what zonin 5. Economic Vitality obviously an economically healthy location is more desirable than one that is stagnant. An 6. Transportation Outlets while it is not desirable to have a home right by a major highway or airport, it is very d

and sell it for $20.

ou to plan your cash flow accordingly and get by when things are tougher.

e tax benefits of depreciation and valid expenses.

r making money off of capital gains (increase in the lands value).

major part of the property for me in the long run, but who is also willing to take care of it and to treat it well?

ncrease the value of properties there. s greater value than those that are farther away. re populous, there will be more competition for real estate areas in urban areas compared to suburban and rural areas. w safe the area is, and what zoning area surrounds the neighborhood. For example, a house in the middle of a residential area will have m ble than one that is stagnant. An indicator of this is whether many investment into that locations (i.e. presence of companies). ajor highway or airport, it is very desirable to be relatively close to major transportation outlets, mainly major highways. This probably ho

and rural areas. dle of a residential area will have more value than a house on the fringe of the area close to industrial use. resence of companies). major highways. This probably holds more true for commercial rather than residential real estate.

You might also like