Investing in real estate requires taking into consideration several aspects of the real estate industry, including profitability and future prospects. This should be a careful decision that takes into account a few factors. Learn how to start investing in real estate by reading this article.
A quick look at the development of the real estate market over recent years reveals a very strong growth, which is accompanied by a growing appreciation of property values, an effective reduction in the time it takes to sell and a greater tendency for transactions to proceed without any hitches. Of course, this positive situation has appealed to real estate investors and also created renewed interest among those who have never invested in this sector before.
Starting to invest in real estate can, in fact, be quite viable in light of the situation we are currently facing. Still, it is essential that some essential matters are considered in order to increase the profitability and security of the investments made.
Real estate investing, just like any other type of investment, carries risks and advantages. Thus, in order for an investment to guarantee positive results, it is very important that you know the legal issues, the advantages and risks associated with this market.
Today we will provide you with all the essentials to start investing in real estate.
Investing in Real Estate: Where to Start?
If you have never invested in real estate before, it is only natural for the first steps to appear complex.
Firstly, when making this important decision, you should know the legal procedures related to this type of investment and also have all the support to which you are entitled, a strong motivation and, of course, the most accurate sense of opportunity. and business.
An overall look at the economy of the place of investment is also important so that you can better understand whether your investment can generate the desired return.
Next, but still among the first steps of real estate investing, it is very important that you know some of its legal terms. One of the things you should know about is the real estate investment plan, where you will find a platform that brings together investors' interests and allows you to access a management team.
You must still make a decision on what kind of investment you want to make. For example, are you interested in investing in residential property? Or a commercial one? It is important that you understand which sub-sector you intend to operate in.
Start Investing In Real Estate: The Importance Of Studying The Risks And Benefits
Risks and benefits are both sides of the coin of any type of investment and if you are going to start investing in real estate, these are the things you should consider.
In a phase of economic growth and in the face of improvements in the real estate sector, it is true that this is a relatively safe investment. Still, you should consider aspects such as the region you are investing in and its particularities. For example, a secure investment at this time would be in the Greater Lisbon region.
Even in the safest cases, however, you should always consider a home as a perishable asset and consider the costs of any future building needs or interest rate hikes.
Despite the risks, the benefits and incentives are also a reality for those who want to improve the return on their investment. In the case of foreign investors, the famous Golden Visa (Residence Permit for Investment Activity) is one of the best benefits; Other measures, such as the reduced VAT rate (at 6%) for urban and heritage redevelopment and the reduction or even exemption from the Municipal Property Tax (IMI) may also apply in this situation. In addition, those who want to invest in real estate for future letting purposes will also be entitled to various incentives.
Start Investing in Real Estate: Think Ahead and Choose the Best Brokers
Real estate investing is now a very safe way to invest your money. The characteristics of the sector today, as well as the reduction in interest rates, easy access to loans and the appreciation of real estate value, are all highly attractive incentives for new entrepreneurs and investors.
With our eyes fixed on the future and having clear goals, it is possible to make this investment very profitable and beneficial, which can give a truly significant return.
In addition to the booming housing market, good choices can make all the difference between success and failure in this type of investment. Choosing an effective and knowledgeable broker can be ideal to assist you in the entire decision making process. Companies like Engel & Völkers will be a wonderful choice to support you as the intermediaries in this entire process.