Lots of property buyers look for investment opportunities in the first place. It is one of the most popular ways to keep and multiply your income. But just like every other type of investment, this one needs a correct approach that can help you to avoid mistakes. Learn them before becoming an investor.
Risky Business
Investment depends a lot on the situation on the market, stock prices and even natural events. And every potential investor needs a lot of knowledge. That's why lots of people consider buying property as a pretty simple way to invest their capital, whether the property is in their country or abroad.
The risks seem quite obvious: you can learn the current state of the real estate market early on, choose a particular residential compound or a district, bank on a beach property for vacational renting or less touristic places with long-term renting potential. You may think, considering such details is self-evident. Nevertheless, newly-made landlords are making the same mistakes over and over again in every country.
Gladly, we are here for you. And today we are going to tell about typical rental mistakes that investors can avoid.
Ignoring Tax Advantages
Landlords tend to ignore tax advantages, while it can increase their income or help with the dept, if credit had been used for a purchase.
Different countries offer different conditions for foreign buyers. Places like Cyprus offer tax reduction, if you buy a specific type of property. Some countries allow you to benefit from ownership with tax deductibility.
Therefore, when buying property always learn as much as possible both about tax payments and tax benefits.
People often forget that real estate market is different for landlords and sellers. Property prices can stay similar for a long time, while rent can grow each year and become seasonal, depending on the area.
Checking and changing the renting price is important, whether you offer a long-term or seasonal rent. It is much more beneficial to you as a landlord to make the price just a little hire each 6-12 months instead of increasing it once every several year on a big sum. Seasonal rent must be floating as well.
Keeping the same price for a seasons rent all year long is not a successful tactic that can only help you to lose potential clients and decrease the income. You will not lose much of a potential benefit with a slight reduction of the price. But you will lose a lot, if nobody occupies your property for the demanded price.
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950 € per month
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We offer you a studio apartment in a residential complex with the infrastructure of a 5-star hotel. The apartment in this complex is fully furnished and equipped with household appliances. The comfortable studio is located on the 6th floor and the total area is 45m2. The apartment consists of a living room combined with a kitchen area, a...
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We offer you a cozy apartment in a modern residential complex My Marine Residence.
The complex was built in 2010 in the Mahmutlar district, in the city of Alanya. The beach and the landscaped promenade are just 600 meters from the residence.
The rich infrastructure of the complex includes:
Outdoor swimming pool
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850 € per month
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The residence is located in the resort town of Mahmutlar, just 400 meters from the Mediterranean coast (6 minutes walking distance). Today in Mahmutlar there is everything you may need for a comfortable stay: shops, supermarkets, an endless variety of restaurants and cafes, both with Turkish and European cuisine, discos, parks, ATMs, bank...
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The layout of the apartment consists of one bedroom, a living room combined with an American-style kitchen, a bathroom with a shower cabin, and a balcony. The apartment is equipped with everything necessary for a comfortable stay: upholstered and cabinet furniture, household appliances (TV with Russian channels, refrigerator, stove, electric...
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APARTMENT FEATURES
IN A COMPLEX WITH A SWIMMING POOL
THE PRICE IS VALID FOR RENT FOR A MAXIMUM OF 12 MONTHS
FULL PREPAYMENT
DEPOSIT IN THE AMOUNT OF 2 MONTHS RENT
living room
2 BEDROOMS
2 BATHROOMS
THE APARTMENT IS FULLY FURNISHED
THE FURNITURE IS NEW
LOCATION
BEACH - 1.8 KM
THE LAND OF THE LEGENDS THEME PARK - 2.5 KM...
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RestProperty
650 € per month
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Online ViewingRemote Transaction
We offer you a furnished apartment for rent in one of the most popular areas of Alanya - Mahmutlar.
The cozy Art Residence complex with a large garden, an outdoor swimming pool, a generator, a camellia and a barbecue area is located a few minutes' walk from the sea - just 350 meters away. Restaurants, pharmacies, large chain stores, hospitals,...
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620 € per month
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80 sq.m321
Apartment 2+1 in Konyaalti.
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The complex has a swimming pool.
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Contact a Habita representative for more information about this facility.
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Luxury VIP 3+1 apartments for rent and stunning views of the port of Alanya. The apartments are located on the cape on which the well-known fortress is located. To live in a historical place and feel like Caesar or Cleopatra, isn't it wonderful?! Only 1400 euros per month. Just a refundable deposit of 1400 euros! And only a commission of 700...
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2+1 apartment for rent in Mahmutlar district. A complex with full infrastructure. Two outdoor pools, water slides, indoor pool, Phineas center, Hammam, Sauna, Tennis courts, volleyball and basketball courts, parking, generators. The cost is 700 euros per month. The deposit is 700 euros (refundable). water, electricity by meters, + Internet are...
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350 € per month
Flat in Trabzon, Turkey
150 sq.m432
Online ViewingRemote Transaction
Our company has a long 10-year history and thousands of satisfied customers. We specialize in real estate and investment. Our team consists of 40 people, the headquarters of the company is located in Trabzon, as well as the branches of “Trabzon Invest” are represented in St. Ambula, And nkara and Zmira.
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100 sq.m331
Property for rent in Tirana, the apartment is located in a very good area of Tirana, close with Elbasani street
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55 € per day
Flat in Alanya, Turkey
80 sq.m211
Online ViewingRemote Transaction
We offer you an apartment for rent in the resort area of Mahmutlar. This apartment is the perfect solution for a vacation stay by the sea. Its spacious area and abundance of light create a cozy atmosphere. A special feature of this apartment is the balcony, which, thanks to the glazing, can be used as a workplace for online work, as well as a...
Maxxproperty. Hekimoglu construction
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82 sq.m322
We offer short-term rental apartments in the gated residential complex "Parque Recoleta" in Punta Prime.The spacious apartment has 2 bedrooms and 2 bathrooms, a living-dining room with access to a terrace with sea views and a kitchen. A terrace overlooking the park and the sea. The apartment has central air conditioning for cold and heat,...
Apartment for rent in Mahmutlar just 800 meters from the sea. The 1+1 apartment is located on the first high floor and includes a bedroom, a living room combined with a kitchen, a bathroom with a shower and a balcony. The apartment is equipped with new furniture and necessary household appliances, including a TV, washing machine and dishwasher,...
If you want to buy property in a particular region or a country, because everyone does so, then your reasoning must be reconsidered.
It is absolutely ok to buy a flat on a Spanish shore due to nostalgic childhood memories of your family vacation. But that is not a good basis for an investment. If you goal is to make money, then before making a final payment get rid of emotional involvement and think about economic factors that can influence rentability of your real estate. Whether it is economic crisis, high unemployment rates or even a risk of earthquakes, each of these factors can make property more or less attractive.
Growing prices in Bulgaria drew lots of foreign buyers since the middle of 2000s. Low prices, big stream of tourists and a great renting potential helped quite a lot. But the prices started to fall down after 2014 and many owners struggled to sell their realty for a reasonable price. The selling as a process became difficult in general. And even though the market stabilized since, the prices still have not came back to the previous numbers. Those who kept their eyes on the ball, did not lose and even gained more from this situation. Because it is important to keep your knowledge relevant.
Some owners control the process of renting fully on their own. And it can be done, if you have a small flat nearby or that is the main source of your income. In the second case, you can make it your work, if you’d like to.
But for many investors rental property is considered more as a passive income. And in a willing to make it bigger, they can try to save money on management by doing everything by themselves. This is the exact moment, when they become less concentrated on details. The risk of losing money grows.
Don’t think that saving money on extra services can make it more in the end, if you are not ready to dedicate a lot of time in the process. It is especially important for properties overseas, when you cannot visit it each time needed. Managing companies can help you a lot with taking care of your flat or house, finding tenants and controlling payments. Such a step can make your investment safer and analyze, when it is time to get rid of the property or maybe purchase another one.
Being human means making mistakes all the time, even if they were happening before. But it is pretty easy to dig in just a little deeper into the basics to significantly decrease the chance of risks. There is still a probability to make something wrong in the process. But losing a dollar is less sad, then losing a thousand. Stay mindful and good luck in your future investments.
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