4 Creative Ways to Get the Most Returns on Your Property Investment
Real estate investments are almost always profitable if you do them correctly. And although property experts are currently saying that it’s a sellers’ market right now, the reality is that you still need to make sure your property is valuable.
If you want to make sure that your real estate deals are always profitable, then you have to be creative in your approach and methods. Here are a few tips to get you started.
Pay Attention to Trends
Remember when we mentioned earlier that investors can lose money, it’s usually because buyer money flows towards other project types. For instance, more people are interested in single-family homes and increased space instead of densely populated residential areas.
This means that you’re more likely to enjoy significant returns on investment if you start looking at where the market is going. And while you’re at it, make sure that you’re pricing your property accordingly.
This April 2021 data from the National Association of Realtors indicate that the average price of homes nationally is between $300k and $400k. If your building costs more, it’ll most likely stay longer in the market, even though property inventory is low and they are getting snatched up pretty quickly.
Go Where the Money Flows
This PwC report shows the top real estate markets for 2021. Is your area or city on that list? If it’s not, now is the right time to check out the hot markets and go invest in them. These markets are where the money and population are going.
Depending on what your real estate investment goals are, you can either build or fix and flip or rent. The great thing about hot markets is they tend to stay profitable for at least 5 years –before things stabilize and the prices stay pretty much the same.
Develop Property Outside City Limits
Another creative way to get really good returns on your property investment is developing properties in the city outskirts and suburbs. This is what developer Paul Ognibene and his firm, Urban Spaces did.
He saw the trend of people moving out of the city center during the height of covid-19 and capitalized on that by building condos in a suburb that was just 28 minutes drive from the city center. This initiative resulted in the multifamily condominium selling 90 percent of its units before the project was completed.
Use Decent Fixtures
Some property investors feel like they need to buy magazine-worthy fixtures just to make their property move faster once it’s listed. This is really not necessary. In our experience, unless you’re developing a high-end or luxury home, there’s really no need for expensive fixtures and finishes.
In fact, renters and buyers aren’t expecting that either. They’re looking for good decent-looking fixtures that work and complement the beauty of the home. Focus on that, and you won’t necessarily need to increase the selling price of the home just to cover the costs of the fixtures.
