what to consider before investing in property

Investing in property is a delicate balancing act between risk and reward. This is because of the low liquidity nature of all property investments. Here are some of the things you must consider before investing in property:

The location

Location remains the most important factor that determines the profitability of a bmv property. It is much about proximity to amenities, status of the neighbourhood, security, and availability of scenic views. Also how far the markets, transport hubs, and freeways are really matters.

The value of the property

Investing in property has much to do with the property valuation. It’s this that will determine the financing, listing price, insurance premium, taxation, and investment analysis.

The purpose for investing in property

You must have a clear purpose for going for a bmv property if you hope to avoid unexpected results. This is because property is a low liquidity investment which you should go into with everything laid on the table.

Expected cash flow and profit potential

The purpose for which you are investing in property will greatly influence the expected cash flow. Regular cash flow usually comes from rental income. The profit potential is considered by projecting the value of the property at the time of sale.

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