Purchasing real estate, especially when related to investment plans, requires time, market knowledge and skillful assessment of profitability.
How to find an apartment at a favorable price, in the right location and with a high standard of finishing?
Investment knowledge is one thing, it is also necessary to be able to find a premises that will ensure a safe and profitable capital investment. When looking for real estate, it is worth knowing what to pay special attention to, what should make us vigilant, and what is the difference between investing in a residential premises and a hotel premises.
Investing in real estate – what to pay attention to?
It is worth knowing the differences between investing in a residential premises and a hotel premises. Investing in real estate is not only about purchasing an apartment for long-term rental. There are also many short-term rental options available, and in this case, the location of the property is particularly important. Moreover, the purchase of an aparthotel also allows natural persons to deduct VAT.
See also: How much can you save by investing in an aparthotel?
Renting premises in an aparthotel is associated with a higher turnover of tenants, which requires much greater involvement in the rental service. In this case, it’s worth considering cooperation with the real estate operator and pay attention to high-quality equipment of the premises using durable and resistant materials.
What else should you consider when looking for the perfect property?
Local development plan
Before purchasing a property, it is worth checking how its surroundings may change in the coming years (planned investments, development of roads and communication routes). This information will allow you to estimate whether the planned changes may affect the value of the property.
The surroundings of the property are also important, especially if it is a hotel. It is worth checking whether a given place is eagerly visited by tourists or business clients, how much competition there is in the area, and whether the place is well connected to the city center. It is important that the location meets the needs of the group to which we plan to rent the premises.
Hidden costs
All additional costs affect the profitability of the apartment, so before signing the contract, it is worth determining exactly what to expect.
Before purchasing a property, you should carefully estimate the costs, including those that will arise during the operation of the premises. Therefore, it is worth paying attention to the amount of real estate tax, the cost of the loan (if the investment is financed in this way), the maintenance of the apartment and any repairs or renovations (will the costs also include renovation of the common parts of the building?). There may also be the cost of promoting the premises in order to reach tenants.
When looking for an apartment on your own, it is also worth checking whether the total price includes a parking space and a storage room, and if it is a second-hand apartment, you should carefully check whether the premises require general renovation.
Finishing standard
When purchasing an apartment or premises for short-term rental on the primary market, when signing the contract, we will certainly also receive a document containing detailed information on the work that must be performed before handing over the premises (even if we are talking about the developer’s condition). Maybe worth considering turnkey finishing? Fully furnished apartments immediately start functioning as assets.
When deciding to invest in a hotel facility, it is worth paying attention to the finishing of the premises to a higher standard, because the quality of materials and appropriate space planning are extremely important for the functionality and efficient use of the rented space.
Historic property
Before purchasing a property from the secondary market, it is also worth checking whether it has not been recognized as an immovable monument, which involves many restrictions. The care of a conservator is then necessary, so you have to take into account additional costs and difficulties if you want to renovate or expand the property.
Where to look for the best offers?
Advertising websites
Advertisement portals are one of the first places where interested parties look for real estate. No wonder – it is also the best source of information about average prices in a given area, the popularity of a given square footage or room layout, as well as the attractiveness of a given area.
The available filters will help you compare given premises on the secondary and primary markets. However, it is worth being vigilant and watching out for too attractive offers. This does not mean that every promotion involves fraud, but if the price is much lower than the market average and the premises are described in only superlatives, a red flag should light up. When looking for an investment property, patience and cool calculation are important.
Websites of developers and real estate agents
Currently implemented construction investments can also be found on developers’ websites, but browsing the offers of each company individually takes a bit more time. The advantage of this solution is direct contact with the sales office of a given developer, which will allow you to obtain detailed information about a given property or learn about further investment plans.
However, you should always check the developer – how many years he has been operating on the market, what is his market position and whether he is in debt, what properties are in his portfolio, what opinions can be found about him on the Internet, etc.
Another solution is to cooperate with real estate agents. They often have access to attractive offers before they appear on the market. Even though using their services involves an additional fee, we save time and gain confidence in finding an offer that meets the main search criteria.
Social networking sites
Social media is not only a place to share moments from your private life. We can also find a lot of offers on websites such as Facebook or LinkedIn, especially from a given region. Frequently updated Facebook groups are very popular, and a lot of announcements and current information can also be found in developers’ profiles.
However, each of the above-mentioned activities requires a lot of time, and getting to know the market on your own is not the easiest thing.
Are you looking for proven properties that ensure a safe investment?
Contact us, we will be happy to help you find a place that fully meets your needs
