The situation in the real estate market with high prices is complicated and unpredictable.  How do we know whether or not to invest in a real estate project to make a profit? What are factors to consider when investing in real estate?

WHAT ARE FACTORS TO CONSIDER WHEN INVESTING IN REAL ESTATE?

1. Legal aspects of real estate project

A fully legal project has full papers on business license and real estate investment, the land fund complex is planned in detail 1:500.  Standard projects will have a construction permit, project acceptance notice, and bank guarantee documents.

What are factors to consider when investing in real estate? / ph: pexels 

In fact, many investors sell real estate before all documents are completed, and there are still have buyers who ready to take their own risk for a profit.

2. Investor's reputation

Getting to know the investor by taking a close look at rankings of the investor’ products and services whether they are recognized or appreciated by buyers or not.  How do people who are living at projects feeling and what the media say about the investor.

Evaluating on truthfulness of the information provided to the market.  When a project is put on the market, there is a lot of information surrounding the project and the investment company.  

Which management and distribution partners are real estate investors cooperating with? The partners that chosen to manages and distributes real estate will show professionalism and service quality of the project investor.

The management and distribution partner is sales representative for the investor, their reputation means that the investor is reputable. If the investor had previously completed projects, going to locations of those projects to check it out yourself, and getting information of experiences of the people living there is recommended.

3. Property’s Location 

What are factors to consider when investing in real estate?

Will there be an increase of job chances in the future at the location that the project owns? An increase of job chances means an increase in cash flow, there are cash flow in circulation mean that that property will increase in value.

4. Property infrastructure

Will the infrastructure in and around the project change in the future?  A project that is built, the infrastructure will be done step by step but must be synchronized with the surrounding project, in the future there will be new infrastructure to connect the project.

A beautiful project, located at a beautiful land fund but without good traffic to go to the project then it will be very inconvenient. Therefore, many projects have reasons to convince buyers as the airport is about to open, the highway is about to open, the shopping center complex is about to open to make the real estate project more valuable.

The cooperation of the local government has an impact on the project.  Depending on the size of each real estate project - large or small - it depends on local governments at all levels to cooperate and create conditions for the project to be developed.  Local development policies that are not suitable for real estate projects are difficult to enforce.  For example, at a tourist city, if real estate products related to tourism then it will get support from the local government.

WHAT ARE FACTORS TO CONSIDER WHEN INVESTING IN REAL ESTATE?