INVESTORS’ CORNER: I want to earn better returns, what can I do?

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By Nasar. El-arabi

If you are looking for low risk and secure investment opportunities that have the potential to offer good returns in the long run, few can do it for you better than real estate investments. This industry not only experiences low volatility, but also offers a sure bet return on investment.

An ideal real estate investment will offer capital gains appreciation at a minimum of 10% per annum. Real estate investment 101 tells us that location is king. This then means that ROI is directly proportionate to the location of the property.

There are number of factors that you need to weigh and take into consideration at the time of investment in real estate.

Upcoming neighborhood: As a general rule, you should always invest in an area that is growing. Investing in already established areas may be a tad expensive and the ROI may not be as rewarding as in growing areas.

Developing areas will offer you the luxury of buying at a lower price and in turn reap high returns.

Amenities: From our experience, when you make the decision to invest in the real estate space, you should ensure that the property has general amenities which add to its value.

Proximity to shopping complexes, malls, swimming pools, recreational parks and the like will add value to your investment. In underdeveloped areas that lack these facilities, you should ensure that plans are in place to cater for such an eventuality in the scope of expansion.

Accessibility: You should also ensure that the property you are investing in is easily accessible. Proximity to a public transport network will greatly increase the value of your property in the long run. Ditto schools and hospitals in the neighboring areas.

Do your due diligence and make the effort to check out the vicinity for these facilities. An area surrounded by schools of repute and state-of-the-art hospitals has the potential to provide you with a high ROI that many can only dream about. You cannot go wrong.

Business/Employment opportunities: When investing in properties, you also need to consider whether or not the area has a scope for business and companies. Keep your ear on the ground to the possibility of large companies or corporates relocating to the area. This is because these businesses will create a huge housing need for their employees which means you could be sitting on a potential goldmine.

These are just a few tips to point you in the right direction. If you wish to learn more about how you can boost your real estate ROI, visit Metrolina Real Estate Association.

Nasar. El-arabi realestatebusters.com & [email protected], is a member of Metrolina Real Estate Investors Association, which provides education, mentoring, and networking for real estate investing in the Charlotte region. For more information, visit www.MetrolinaREIA.org.