Fringe Property – For Sale Or Rent (Part 2)

This is a follow-up post from the last week’s post on getting a piece of real estate for your investment. So what’s coming up is another set of tips and techniques which you can use in order to acquire a piece of prime real estate which will give you the capital yield that you are looking for.

First of all, determine what you really want from the real estate investment. Do you want good rental yields from the land or apartment which you are going to acquire? Or are you thinking of cashing out in a couple of years time in order to maximize the returns on your investment? These two are vastly different when it comes to making the most money. You will have to consider your options more carefully especially when it comes to choosing a real estate investment which is closer to what you want. There are also some questions on ethics which you will need to consider – read this article on Oprah on the same topic.

Secondly, you will need to consider your budget as well. Not everybody can afford a piece of prime real estate (for example, something in downtown Dubai or a KLCC condo such as Park Seven), and so you will need to narrow down your choices to invest by carefully considering how much you have to invest in your choice of real estate. This can be trickier than you think. For example, figuring out your monthly cash flow can be tedious especially when you are doing it for the first time. If you are not financially “literate” then you might want to engage someone who is, or get professional help as much as possible. What is important here is that you may also want to have a tracker spreadsheet which gives you a good template which you can use to compare your choices of properties according to the criteria that you have already narrowed down –

With this spreadsheet, you will be able to determine much more effectively what the “realistic” choices are and then you can decide more effectively. Here some Excel skills will be invaluable!

Now if you are still unsure of what to do then it is advisable to go and get a realtor or a real estate broker which you can trust in order to make these decisions for you. Of course, a reputable property broker will make all the difference, and if you do not know a good one then you will be at a distinct disadvantage when it comes to picking up the gems in the real estate industry.

Of course, you will need to pay these experts to do your bidding for you but it’s all worth it. Real estate is no joke, and if you are able to make the capital yield that you want then you will be able to reap the benefits and realize your return-on-investment goals many times over.

After all, it’s a question of ROI!

Once you have honed your skills on picking up the right real estate investments then you will be able to easily see or identify what the property gems are which will make you a lot of money. The key here is not to be afraid when it comes to making real estate investments, and with the right amount of experience you will be able to figure out what to do even without relying on a fancy spreadsheet.

Next week I am going to post another blog article on the same topic of real estate and investments, so watch this space!

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