Which property format is best for investment?

When purchasing real estate for investment, you need to carefully consider the entire process from start to finish.

After all, the cycle of an investment transaction ends not with the purchase, but with the sale of the object.

That is why I recommend first of all focusing on predicting the exit point.

An investor must first answer the following questions:

• What budget do I plan to invest?

• What investment period is acceptable for me?

• What kind of investment income would I like to receive?

Having answered these questions, you can proceed to the next block:

·        What offers currently exist on the market within the planned budget?

·        Which of these offers meet the required parameters (profitability, quick liquidity, security)

·        Am I ready to take risks in order to increase profits?

Next, we begin to model the transaction.

This requires an in-depth market analysis using statistics.

This analysis should answer the following questions:

• The ratio of supply and demand in a given location

• Detailing of demand in location down to neighbourhood, house, type of apartment

• Demographics of the area

• Economic prerequisites for cost growth in the location

• Reputation of the developer

• Financial model of the developer’s project

• Portrait of the target buyer

This is just a brief guide to the process of selecting investment properties.

In our work, we use many evaluation criteria to select objects.