Property is just one of the most lucrative investments anyone could actually enter. It’s one commodity that could stand the test of time and would generate income depending on your terms. When the pandemic hit, one would think that a business venture does not make any sense. But in reality, it’s actually a good time to invest in property because of the fact that staying indoors is much needed right now especially with the virus still among us. So the likelihood that this will be empty is very slim.
So, let’s say you decide on investing in building an apartment. What do you know about your prospective clients? How do you know that it could become profitable for you? Here are two of the biggest considerations you must take note of especially at this time.
Amenities & Capital Growth
Surely, one of the best ways to entice them is through great amenities available such as a pool, a gym, and a rooftop garden. However, maintaining them could be difficult which is why others dismiss the idea of investing in this.
If we are to talk about capital growth, well, it depends. When a place is regarded as hip or fun, it’s most likely why the capital growth is strong. Facilities that renters could enjoy are always a plus. Unfortunately, the levies will go up as well which would affect your income in such a big way. Fortunately, there are ways to still invest in apartment buildings with good amenities but in a much more affordable way and this is by limiting the floors and make them choose modest amenities that renters could still enjoy.
Right now, interest rates are low which is good for so many property investors because funds are very much needed these days. However, you have to remember that this could all change over the next five to 10 years. Rising rates could become a thing again and that is something to really consider. Experts are suggesting that if you are looking into invest in property, specifically an apartment, it’s best to try to make it unique or have elements that others do not have. It is up to you to do your research.
Pre-COVID, student accommodations were a real cash flow for so many investors. But because of the current situation that nobody really saw coming, looking at apartments has changed so much. Comfort is such a big thing to consider these days when it comes to choosing a place to stay. Now that working from home has become a part of the new normal, a lot of renters would opt for a place where they can maximize their time at home.