How do you get started in real estate investing? Basics you should know
Real estate investment is one of the most vital sectors in our world that people turn to globally, because of the great gains that the investor achieves if he invests his money in real estate, as it is among the long-term investments in the world.
Real estate investment is very similar to investing in the stock market, as investing in the real estate market depends on determining the value of the properties that the investor wants to buy, and then knowing the size of the profit resulting from this investment in the market. case of sale or rent.
Advantages of real estate investing.
In the following lines, we will mention the advantages of real estate investment:
- stable source of income
Real estate can provide you a fixed and periodic monthly income by offering your apartment for rent to individuals or companies. It is an accessible form of real estate investment that most people resort to.
- Buy what fits your budget, not your need
One of the advantages of real estate investment is the ability to buy units that suit your capabilities and budget. You can buy an apartment in a small space and at a reasonable monthly installment to invest in it and get a return whether it is by renting it or selling it later.
You can invest in other types of real estate such as shops and commercial offices, and there are many opportunities in new projects to invest in commercial real estate.
When investing in real estate, the most important thing is to avoid and avoid certain mistakes and risks.
Types of real estate investment.
In the following lines, we mention the types of real estate investment:
- Investing in residential real estate
Residential real estate investment is the most important type of real estate investment due to the huge increase in the world population, which requires providing more apartments or houses to contain the world population.
Investment in residential real estate contributes to solving the housing problem in the world by providing apartments through residential projects that investors start to pay attention to and invest in.
In addition, investing in residential real estate is considered one of the safest types of investment because it is made directly between the investor and the client or broker.
One of the advantages of investing in residential real estate is that it provides a lot of profits through the monthly rent that the investor gets from the tenant.
- commercial real estate
This type of investment is considered one of the most profitable types, as this type includes commercial real estate investments towards markets, storage buildings, shops, parking lots, commercial centers and others.
Despite the many advantages that distinguish this type of real estate investment, there are some things that affect it, such as the requirements of good design, marketing, maintenance, operation, safety and prosperity systems.
- Investing in industrial real estate
Industrial properties are of the low cost of operation and construction because they do not require high cost designs. However, it does include safety measures such as proper heights, ventilation, heating, loading areas, and more.
Among the advantages of industrial real estate investments is that they are in empty areas and outside cities, and do not affect the health of the population, because they include factories, warehouses, distribution buildings and research centers.
In terms of profits, it generates significant revenue through service fees.
- Real estate investment in land development
These species are considered the most famous species in the world, despite the difficulty they face due to the provision of infrastructure and superstructure for these lands to be developed.
- Investment in administrative and administrative real estate
This type of real estate includes offices and administrative headquarters. In this type, an entire area close to the primary service areas is allocated to include these offices.
- Investing in leisure real estate
This type has very high operating and establishment costs. The location and design are the most important factors that distinguish this type and raise the level of recreational properties.
Because there is a relationship between the site and the services, the services must be at a high level and a distinct location to make a lot of profits, and vice versa, the lower the quality and the lower the service, the lower the profits.
This type of real estate includes hotels, tourist resorts, amusement parks, clubs, amusement parks, and more.
- Investing in real estate recycling and selling
In this type, a real estate investor buys a property to resell at a higher price or to rent it out in order to get the most out of it.
When the investor begins to renovate, repair and rebuild the property in order to sell it and make a profit, this type of investment is preferred by people who want to earn money quickly.
Useful tips when entering the real estate investment world.
Make sure to purchase a property that is distinguished in terms of location and ensure that the area has parking spaces and easy access to the property to be purchased by public transportation or by car.
In a demanded area with reasonable rents, it does not make sense to buy a property in a place where the demand is not high, or the rent is very high, which could cause you a loss.
The proximity of services to the investment property, which means its proximity to schools, restaurants and marketing centers. These services help the tenant to settle in the property.
It is possible to consider a type of investment that is different from the traditional pattern. The current openness in Egypt helps to find other ideas such as hotel apartments, medical centers and other services that attract different segments of society, especially foreigners.
How do you start investing your money in real estate?
If you want to invest in real estate, then you should make sure that you buy a property that is distinguished in terms of location.
We make sure that the area has parking spaces and easy access to the property to be purchased by public transportation or by car.
In an area with reasonable demand and rents, it does not make sense to buy a property where the need is low or the rent is too high, which could cause you a loss.
The proximity of services to the investment property, which means its proximity to schools, restaurants and marketing centers. These services help the tenant to settle in the property.
Finally, we talked about how to invest in real estate. Basic features of investing in real estate.