If you’ve been thinking about investing in real estate for a while, enjoy watching investment videos, love hearing success stories… but still haven’t taken the leap, we’re happy to say you’ve landed in the right place. In this post, we’ll walk you through practical tips to help you make a solid and profitable investment in the property market.
How Do You Make a Good Real Estate Investment?
Investing in property can be a very smart financial strategy when approached with knowledge and foresight. Here are some tips to guide you on your path to a successful real estate investment:
Do Your Market Research
Before you take the plunge, immerse yourself in market research. Look at local trends, demand in the area, and growth projections. Understanding the market is key to making informed decisions.
Define Your Goal
Are you looking for a property to rent out or to hold long-term and sell later? Clearly defining your goals will help you tailor your investment strategy.
Location, Location, Location
It’s not just a cliché. The location of your property is fundamental. Choose areas with growth potential and nearby services—these factors can increase the value of your investment over time.
Evaluate Your Budget
Determine how much you’re willing to invest and make sure to include additional expenses like taxes, insurance, and potential renovations.
Build a Professional Support Network
Partnering with a company like PropHero—who guides you throughout the entire investment journey—is essential to taking the step with confidence. Our experience, data-backed insights, expert team, and network of local partners can provide valuable information and help you make the best possible decisions.
How Much Money Do You Need to Invest in Property?
Real estate investment isn’t just for people with large fortunes. Here’s a guide to understanding the initial investment:
Initial Payment
If you need financing, banks typically require a down payment of 20% to 35% of the property price. The higher your down payment, the lower your mortgage and long-term interest costs.
If you don’t need financing, you simply pay the full price of the property.
Budget for Additional Costs
Beyond the purchase price, set aside funds for taxes (around 10% of the property price), notary fees, registration costs… and any improvements the property may need (renovation, furnishing, etc.).
Smart Financing or Leverage
Explore different financing options and find the one that best fits your needs. A strong credit history can open the door to lower interest rates. Plus, many of our clients have enough savings to buy a property outright, without financing. But here’s the twist: with financing, it’s often possible to buy two properties with the same savings—allowing you to expand and diversify your investment portfolio.
Is It Profitable to Invest in Real Estate?
The question everyone searches on Google has a clear answer: yes, real estate investment is profitable when you follow a solid strategy and make well-informed decisions. The key is to educate yourself, stay aware of the market, and surround yourself with trusted professionals.
At PropHero, we’re committed to guiding you through every step of your investment journey. With the right mix of data-backed knowledge, experience, and personalized advice from our Property Coaches, building your property portfolio becomes an exciting and profitable path.
Remember: real estate investing is a marathon, not a sprint. With patience, wisdom, and a well-thought-out strategy, you can build a strong financial future through property. We’re here to help you achieve your goals!