Real estate investment according to financial teachers is a healthy investment. What is important in real estate transactions is whether the investment is profitable or not and its growth prospects. The formula for success according to leaders in real estate is only "CLEAR":
1. 'C' stands for clash flow. The value of any real estate investment is salt must be able to generate cash flow. How much cash is generated, of course, will vary and reflect factors such as local rental trends, location, infrastructure, and how much your property costs in terms of advances, loan payments, interest rates, taxes, and maintenance costs. You can also join real estate courses online through https://www.neak.no/.
2. 'L' represents leverage. This is important because profits or losses from property investments depend on the initial investment. Studying this aspect of leverage will help you maximize the grabbing of your property market.
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3. 'E' is equity and is based on aspects such as discount prices; potential problem solvers; potential for re-zoning; property that is severely damaged; foreclosure cases and so on. It is profitable to buy equity less than full value. A good bet is a property where the seller approves a price reduction because work must be done.
4. 'A' represents the appreciation of value. Buying valuable property in future developments means believing in investment appreciation. But this is often speculation or guessing. Experts recommend a 10-20 year investment period rather than a quick return investment.
5. 'R' represents a risk that is a factor that can make or break your financial projections. Although many large investors don't pay attention to risk, this is an important factor that must be considered. Always evaluate risks in any investment and formulate an alternative "stand by" plan if the property fails to reward.