Investing in Residential Properties

Before tying up your cash flow to investing in properties, you should ask yourself: “What type of real estate should I invest in?” That’s because there are many different types and some are more suited for you than others and not all properties will give you good returns in the future.There are many valuable investment properties on sale. Some will need a lot of work, time and effort put into it before it yields a profit.

It is dangerous to follow your gut instinct alone when investing in a property. Make sure you do the proper research; especially on the amount of investment you need before you get your desired outcome. If you invest some money in your property and subsequently increase its value, you have a choice of selling it for a profit or renting it out.

It is quite common for investors to start investing in a residential property as most of us would have experience with it when buying our own home. If you are more interested in residential real estate, ask yourself whether you are planning to invest in a landed property or a high-rise apartment/condominium?

Investing in landed properties is still popular today due to a variety of reasons. One of the strongest reasons is the attractive capital appreciation of these properties.

Land properties include link houses, townhouses, semi-detached homes, bungalows, cluster homes and the like. Those who invested when a property was still under construction or pre-selling period have made handsome returns upon the property’s completion. Having said that, the vital factor for good property selection is location.

Some investors believe that land residential properties make solid investments because they are usually turned into homes, making the investment less speculative.

As for investing in a residential high rise, most would agree that rental returns from these properties far exceed those of landed properties. Typically, the returns can be two to three times more in comparison.

Residential high rise includes apartments, condominiums and service apartments. A residential high rise is also a preferred choice for professionals and expatriates, largely due to the facilities within the development, safety issues and convenience.

It is uncommon for residential properties to be rented out without furnishing, whether partially or fully. Thus, you can expect to make an initial investment in furnishings and fixtures before renting your property out in this way your property will become more attractive.