When it comes to tips for investing in real estate, one should always consider the location, property type, financing options and the pros and cons.
Real estate offers amongst the most financially rewarding investment opportunities though these are some factors you should keep in mind.
The location of the property is very important; ideally, you don’t want to choose one in a neighbourhood where there’s not much demand and property value is low / declining. That’s why central city locations make ideal options and it’s no surprise some of the leading property developers in Sri Lanka feature Colombo apartments in such areas.
Consider the Property
Consider if to invest in an entire property or start small by purchasing an apartment to rent. When doing so, ensure it’s backed by a trusted name such as John Keells Properties so you know your investment will be secure. When buying an apartment, also check if you get freehold ownership and if foreign ownership is allowed.
Decide on Buying or Financing
Depending on the investment and personal funds and assets, you will have to decide if you are going to outright buy a property or apartment or resort to financing. Some property developers will offer special financing packages with reputed banks too. Keep in mind factors like expenses, expected return, taxes and interest rates.
Go Through the Pros & Cons
It’s always good to go through the pros and cons before making your decision. For example, a steady passive income, increasing property and investment values and relative stability are amongst the plus points of real estate investment; however, you also need to consider that costs for entry and exit can be high and you may have to deal with tenants too.