First of all, ask yourself what the price of the area is. Is the home you are going to buy cheaper or more expensive than the other ones you gave? Is it worth it to set it up and sell it or is it better to make a long-term investment and rent it?
Then see how many months of rent you would repay your real estate investment. Also consider the possible losses you would have if the tenant left and you would not find another one in exchange for the price of several months. Finally, calculate your placement return.
Only after you have all these figures written down on a sheet of paper can you say that you are making a calculated investment, assuming certain results and, of course, some risks. The use for the Luxury Villa in Koh Samui happens to be there.
Real estate investments through mortgages
Even if at first glance it may seem counter-intuitive to use a mortgage to make a real estate investment, if you do your calculations well, such an approach can prove to be really profitable. If the monthly rate is somewhere between 150 and 160 Euro and you manage to rent the home purchased with the help of the bank for at least 250 Euro, the difference in money is your profit.
It is true that the amounts obtained in this way will not be some terribly large, but at the end of the year, you will still earn some winnings.
Don’t forget about fees and commissions
One mistake that beginners in real estate investments make is that they forget to take into account the rest of fees and commissions that must be paid when buying or selling a home. Notary fees, VAT if the property is on the company, the corporate tax all these must be taken into account when making the final calculation of the yield.
Get well before making a purchase
Find out what the history of the home is, if any of the laws for restoring the property of the former owners apply, what is the status of the block, whether it is seismic or not. Also, if there are other buildings around that presents such risk. Does the house have a cadastral, tabular? Are there any debts left by the former owner to various service providers? All this information is extremely important and it is good to know them before making any kind of real estate investment.
Visit as many properties as possible
Even if the first home you saw looks excellent, keep seeing as many offers as possible. Only in this way you will have an idea as objective as possible about how the real estate market is presented at the present time and you will be able to estimate the real value of the area and the property in question.
Companies like agentgrouprealty.com will help you to find the best option.