Five Factors to Consider
Mr. Abdullah Al Rashod, CEO of BlomInvest Saudi Arabia, outlines his top five tips for investors to consider when investing in real estate
Looking to invest in real estate? Wondering if now is really the “right time” to be making such a huge commitment? It is always imperative to remember that the home you buy will be an investment and down the road it will be worth a lot more. Inevitably, it comes down to not only the real estate market, but also to each individual’s personal situation.
Before you purchase your own piece of real estate, below are five things you need to consider before making the decision to invest in real estate:
Income Stability
How stable is your income? When you are doing well financially it is very easy to get excited and feel the desire to buy yourself a piece of property. It is important that you address some serious questions – “How stable is this income? What’s the likelihood that it will remain the same or increase in the next six months? What about the next year?” If you’re unsure of your future income situation, then investing in real estate is not the best idea, waits a few months until you are certain of your future earnings and saved a bit of money.
Life Situation
Your life situation can change overnight – are you single at this point in time? Are you married? Are you in a long-term relationship? So you feel the urge to more to a warmer/colder part of the work? Do you travel a lot for your job? Everyone has different life situations and this is why there is no advice to give that would solve every situation when it comes to buying real estate. Make sure that if you are buying a piece of real estate fits your situation.
Local knowledge
Read the local paper and find out what is happening with local development. Is now a good time to invest in real estate? Is it a sellers’ market or a buyers’ market? Is your intent to flip the property or hold it for income generation and appreciation in value? Is the investment in a good location? Is it close to jobs, shops, parking and transportation? Is the neighborhood safe with a low crime rate? It is always important to stay up to date with what is happening in the real estate market especially in the location you are looking to invest in.
Expert help
Make sure you are working with a team of experts who know the right questions to ask. Ensure you have a team that compromises of mortgage specialists, realtors, lawyers and home inspectors who can constantly provide you with knowledge that you can make educated and informed decisions.
Future Goals
Depending on what you have planned in your future you may not be in a situation where investing your money in real estate is the best thing to do. For example, you may have planned to quit your job and travel for a year, or to start your own business or you it may be that you enjoy travelling and want to be able to enjoy the freedom of spending money abroad. Before investing in any sort of real estate ensure that you have a few future goals in check.
