Aftermarket

Where do I start?

For years, investing in real estate has been considered by Poles as the safest and one of the most profitable forms of investment. This is not an unfounded view - the real estate market is more stable and predictable than capital or stock markets.

Moreover, security in the form of real estate ownership gives a sense of security. What is more, the increase in the value of flats in the long run is considered as a certainty. A reasonably purchased flat may additionally bring regular income, whose profitability clearly exceeds e.g. bank deposits.

For many people, however, the barriers that are difficult to overcome are the need to have a large budget and the fear of a missed investment. How to prepare for the first purchase to avoid all problems?

Step 1: Establishing your goals and capabilities

Some people consider renting an inherited apartment as an additional support for the household budget. Others consistently put money aside for more apartments to achieve financial freedom in the future. Others treat real estate trading as a full-time job. Any strategy can only be good if it is implemented consciously and systematically.

Determining why we want to invest in real estate and what goal we want to achieve should be the starting point for any action. Many people still decide to buy a property based on their own feelings. Meanwhile, we will buy another flat for ourselves, another with a view to renting, and yet another to increase its value and sell it quickly.

There are many ways to earn money on real estate, so you have to answer a few questions at the beginning. Do we care about a one-time profit or fixed, long-term income? Do we want to buy an apartment with a view to a quick return, or an investment for decades? Is the first purchase supposed to be a part of a longer plan or a one-off placement of a financial surplus? Finally, it is worth considering how much time and energy we are able to devote to our flats and what tasks we better pass on to someone else.

Step 2: Determine the budget you can allocate to your property.

Many people are only interested in apartments when they have significant financial surpluses. This is a very comfortable shopping situation, but it is not easy to raise such funds.

What's more, often spending large amounts of cash on investments is not the most profitable. Many investors, even if they have sufficient funds, prefer to support themselves with credit in order not to freeze their own money.

It is worth remembering, however, that this is a reasonable solution, especially when the apartment is able to earn at least for the repayment of its own credit. Leveraging loans can significantly speed up the construction of a portfolio of flats and subsequent purchases, but without additional collaterals it carries a serious risk related to problems with financial liquidity.

Investors who use bank assistance should think carefully about their steps and stick to a pre-determined action plan. Flats and offers should therefore be adjusted to the budget, never vice versa.

Step 3: Substantive preparation

High profitability and a stable market make the interest in real estate high, which means that investors have to compete with each other and the best opportunities disappear from the market within a few hours. The ability to assess the real value of a flat and its investment potential, knowledge of the market, assessment of risks, hidden defects and additional costs that have to be borne for a specific investment, and above all, speed in making decisions will provide an advantage in this competition.

It is difficult to expect these qualities from a person who is just beginning his or her adventure with real estate. It is therefore worthwhile to prepare well for the first investment and take advantage of the experience of others. Therefore, contacts with intermediaries, credit and tax advisors, other investors and, of course, persons dealing with investment support may be helpful.

Even if you prefer to get involved in investing only as much as possible, you usually do not have the time or willingness to follow market trends and changes in law. Working with professionals will avoid many mistakes.

INVEST WITH SHERLOOK GROUP!

If you have an apartment for sale or want to renovate the property to make it more attractive, contact us.

We invite you to cooperation:

phone: +48 22 350 75 48
e-mail: nieruchomosci@grupasherlook.pl