Real estate investments are surely providing steady flow of income and returns, only if they are appropriate, strategic and really sound. As a new investor, how could you guard yourself against unlikely real estate investments? It would be helpful if you would take a look at this simple checklist for real estate investments. If you would buy an investment property, better check out the following factors.Location – Market valuation varies depending on the venue of the property. Of course, valuation of real estate in expensive markets is higher compared to similar properties located in cheaper and less lucrative markets. Globally, Moscow, London and Seoul are among the most expensive cities where valuations of real estates are at their highest. Properties in New York, California, Paris and Rome, among some, have always been on top of their ranges.Tenant credit risk – You should know that the valuation of real estate can very much depend on the expected rental income of the property. If the real estate is not likely to generate significant rental income, then its valuation would surely decline.Physical characteristics – When buying a property, check out the utility and type of building as these should affect valuation. Of course, condominiums are expensive compared to apartments because the formers are of course more secured, more developed and are provided with better amenities.Tax implications – Real estate valuation is directly affected by tax implications. Take note that properties are imposed with stamp duties and property taxes, on top of the income tax, which could be computed from the capital gains and rental income.Higher investment costs – Always remember that real estate investments are practically higher and more expensive than almost all other types of investments. For example, you can easily buy and own stocks. By just investing a few hundred or thousand dollars, you can already build up your own stock portfolio. That is not the case about real estate assets. Not too many people are able to invest in properties simply because they do not have appropriate resources to do so.Legal issues – Most real estate investments are not as secured as stock investments. Stock exchanges secure and guarantee legitimacy and safety of investments. In real estate, such regulating body is not present, although a real estate regulator is exiting to rule about real estate practices and at times, prices.Liquidity – Real estate assets are usually not easily and rapidly liquidated. Transactions cannot be completed overnight or within hours. Market conditions would have to be considered as they would influence and regulate the length and duration of the real estate transaction.
In order to complete, the real-estate deals you need to do a lot of paper work. Paper work is quite essential for all real estate jobs. Do you know how this paper work is being completed? Well, the real-estate agent who shows the property to the buyer is taking the first initiative. You will be surprised to know that the real estate agents are doing about 90% of the real-estate deal. You will hardly find any estate deal, which does not contain the real-estate agent. However, there are many other players as well who participate in the real estate. Realtors are one of the team members who can replace the estate-agents. However, the estate agents are still the favorites. Similarly, the real-estate attorneys also play an important role. One cannot really imagine how tense these estate deals are.Most of the people do the real estate deals once in their lifetime. They hardly go for any another real-estate deals after that. Hence, most of them do not have the right knowledge about the real estate. That is why they need the estate-agents and the attorneys. It is true that the busiest member of the team is the real estate agent. However, you cannot really discard the real estate attorney. In fact, you are looking at the deadly combination of the estate agent and the estate attorneys.They both are very active throughout the process and you cannot hope for the deal without them. Some of the estate agents and the attorneys are so experienced that they can solve the deal and complete it within one day and this is really the case. The attorney is preparing all the paper works. However, the credit of controlling the paper work should go to the estate agents who are responsible for finalizing all the requirements of the buyers and the sellers. They note down all the requirements while they have the meeting with the buyers and the sellers. They provide the appropriate details to the attorneys who are experts at preparing the agreements and they dare to finish these agreements within few days.In some of the countries, you can still see the typewriters being used in the court campus. Those typewriters are quite great and type the whole agreements within few minutes as the real estate agents and the attorneys ask them to do. These are some of the rare sites seeing such a great typewriters working on the old typing machines.If you feel of viewing such machines then you should go to the court. They are just awesome and you can hope for some of the best scenes. However, the attorneys guide them and it is the attorney who go through the detail of the papers and find out that they are according to the law or not. They try to make sure that no point goes against the seller or the buyer in the future. Most of the attorneys take the responsibility of such condition. They in fact play a major role in finalizing the real estate deals.