For many people, investing in property brings with it a hugely emotional aspect, like settling down into a new home with a family, or beginning a fresh, new business enterprise. For others, it’s also a highly lucrative form of income – one that is an inevitable part of the current economic system. Yet unlike many more arguably consistent investments, property also carries its own set of risks, which is why it’s important to seek professional advice when considering your first moves in a property portfolio.
Though the rewards can be excellent, real estate is not an instant money-giver. Several factors need to be considered, such as finding the right property and considering what kind of costs are required to bring it up to standard. Realtors and investors alike will tell you that real estate isn’t about current value, but about potential. Of course, this can make it highly speculative – and it also means that you need to bring that potential into fruition when you improve your property, and also contextualise it to the times and community. The swanky loft you’ve just refurbished isn’t relevant unless there are buyers and renters willing to step across the threshold.
You also need to consider the time, money, and effort required to maintain that property. In order to retain its value and relevance, this has to be a complete commitment on your part. Consider the risk, your return of investment, tax benefits, and other factors to help determine if a property is the right call for you.
Do your research
Real estate is very much a learn-as-you-go process, and you don’t have to be a professional when you start out. However, you should be prepared to do your homework and research – learn about the market, current trends, familiarise yourself with the dialogue, and follow it with a passion. This will help you develop not only an empirical background of knowledge but also develop your intuition about real estate – gut instinct can sometimes play as vital a role as logical deduction. Doing research also means seeking advice and second, third, and fourth opinions, and considering different perspectives as well as completely new options.
Companies such as the M1 Group from Lebanon have forged a successful legacy through their investment in real estate. They have achieved this by diversifying their outlook on real estate, particularly where sustainability in the sector is concerned. In an interview with Lebanon’s Prime Minister in 2005 and again between 2011 and 2013; leading businessman Najib Mikati, placed an emphasis on free, sustainable growth in various industries as essential for the prosperity of countries such as Lebanon, as well as the businesses that flourish within them. The same can be said for your own personal real estate – consider taking a dynamic and sustainable approach to your outlook.
As well as seeking expert advice, be prepared to give your investment time and patience. Sometimes the rewards need time to manifest and produce themselves. Be dedicated, committed, and in tune with what you want to achieve, what you are prepared to do, and the people who will be affected by these decisions. While the risk may be a challenge in some areas, embrace it – the chances are you’ll be rewarded.