Real Estate Analysis: How to Make a Real Estate Investment in 2021?
In many cities, houses dropped 9% from the average sales price, and apartments fell 3% from 2019 to 2020.Given the high labor mobility, one of the purposes for 2021 is to take care of the cash flow and generate profits. Here is a short guide as a part of real estate investing training; if you decide to start a real estate business.
Here is a quick real estate analysis for 2021
An achievable budget
It is recommended to research market prices and creditworthiness. It is essential to be clear about the amount of money that is intended to be allocated to the investment. You can search for real estate platforms for the property that meets the investor's needs.
The location, stage of construction, factors to influence capital gains, the tax status of the property, legal and notarial documentation, must be considered. It is recommended to approach a real estateprofessional who can guide the process and thus make a safe investment.
Rent or sale?
The goal of the investment must be defined.If it is to rent or sell or if you are going to acquire a property under construction, in pre-sale, or to remodel and put it back on the market later?
During 2020, houses decreased 9.4% in the average sale price, and apartments decreased 3.5% from 2019 to 2020 in cities, but for rent, homes have increased by 12.4%, and apartments have increased their average prices by 9.6%. Therefore, as per the real estate analysis- buying to rent is an opportunity.
Risks to consider.
A well-done real estate investment will pay off. But think that these will be in the medium or long term. Liquidity is usually not immediate.
The investment could be problematic if it is made without having done some research or previous analysis on the factors that influence the value of the properties and on which the power to liquidate depends.
When investing in a property to sell, the ideal is to wait three to five years to obtain a profit of up to 30%. It is in case of choosing of the property considering its capital gain. And, that there are no factors that could decrease its value.
During that time, there is the option of renting the property to generate income, or if a mortgage loan was used.The interest could be paid with the money from the rent.
Currently, factors such as the stability of low-interest rates and the accessible terms for financing by banking institutions, and that the authorities have announced economic plans to revitalize the construction sector.They give certainty that the market is not going away. Although during crises, such as the pandemic we are currently experiencing, the decision-making process for those who are about to buy a property slows down.
Much emphasis must be placed on the fact that there is no better time to invest than this year 2021! We hope our real estate analysis works in your favor!