LONG TERM INVESTMENT PLAN

Most real estate investors do not base their investment analysis in short-term forecasts. Instead, they tend to look at an investment horizon of three to 10 years or more, with significant emphasis on the possible sources of profitability.

It is important to measure the total return potential of a property. Investors can profit through various sources of financial revenue, increased price of the property is certainly a possibility, but good rates of return from an investment property also come without any gain in price, such as the income properties that can get earnings through cash flow.


ANALYSIS OF A LONG-TERM INVESTMENT

Data needed to make the decision to invest

Property-related data
Include among others proof of tax payments, service payment bills and income documents (if the property is rented).

Market-related data
It involves an investigation of sales of comparable properties, comparable rents, operating costs and capitalization rate.

Evaluation of the property cost

Based on the data obtained the present value of the property can be calculated, as well as the future value.

Evaluation of the property earnings

To estimate the potential return of the property a study of cash flow and internal rate of return should be completed.


Foreign Investment
Foreign Investment
Buying or Investing
Buying or Investing
Investment Properties
Investment Properties
Buying Real Estate
Buying Real Estate
Agent or Broker
Agent or Broker
Contact
Contact