6 rules that guarantee successful real estate investment
The experts in the real estate market agree that there is no so-called failure to invest in the real estate, arguing that the need for housing and office is not nascent today, it is not limited to a period of time, but always exists, but it is the volume of demand for a real estate that varies from time to time depending on different factors and board A few other reasons are supported by real estate marketing, the most notable of which is the mixing of some with promotion.
In their view, those knocking on real estate investment must have a variety of qualities, such as the practice of collecting experience, or the provision of education and training in practice. Experts provide advice based on 6 rules that guarantee good results at the minimum and during normal market conditions.
Those six rules are limited by those experts to the need to invest in the area known by the investor, whether or not they live or work., as the investor becomes aware of the benefits of the region and the quality of its property and then invests in it that reduces the risk scale. However, experts are also advised to invest in areas adjacent to the neighbourhood where they live or work, as well as the need to invest in high-specification real estate, as its value increases with time and does not decrease.
Experts also consider it important to go to investing in buildings because the demand for them increases over time, and adult chats do not allow for the stories of buildings built at cheap prices compared to the price of their subsequent sale. Experts do not forget to mention the need to invest in old estates as a condition for renewal.
Individuals and companies
Investing in real estate is one of the most profitable types of investment, and one of the most common economic activities among people, the activity is not limited to professional trade, but a large segment of society can generate good incomes through real estate investment, they are either full-time for real estate work or They are using it to generate additional income to their original incomes. However, real estate activity is one of the most complex and overlapping activities of many variables and data, but in the Arab world in general and in the Arabian Gulf in particular, it is one of the safest and most stable sectors.
This outcome has not come from a vacuum, as much as it is the fruit of a deep-rooted historical necessity, so the power of demand in the real estate market is driven mainly by several factors, the most important of which is the significant increase in the population and the economic boom in the region, as well as the expansion of the area of cities supported by urban renaissance Comprehensive, and may go beyond the establishment of entirely new cities, such as in the Emirates in general and Dubai in particular, and on large tracts of land.
All those factors led to increased confidence in the real estate sector, and investments (both domestic and foreign) are being channelled tremendously of giant companies with huge capital, advanced studies and research, and many advantages for development and operation.
So the new investor has to realize that real estate investment is two types, each of which is similar to the second in everything but a factor (time), which is divided into two parts:
The first (long-term) is aimed at owning land and housing or commercial units that are expected to recover over the next long years or owning the property are established, busy and yield a steady return either through leasing or operation, the second is real estate investment (short-term) and is intended to sell the property Immediately after possession or after improvements, which some call a form of speculative investment.
Therefore, the viability of real estate investment is based on mysteries and mysteries, perhaps most notably experience, practice, price and location, as real estate is not always more valuable, the capital value of the property is increasing but not on a daily basis, and it is not strange to know that no price rises unlike other neighbours because it Higher quality or greater space, but because its location is better than the second. Thus, the rest of the reasons include the status of the property to be procured, including specifications, as well as its location.
The experts provide advice based on 6 rules that guarantee good results at the minimum and during normal market conditions:
1. Invest in where you work or inhabit: if you want to be a successful investor, you must be fully aware of what you are doing. And if you’ve spent several years in a certain area, you know that you are more knowledgeable about local real estate than you think.
Although you have a good idea of the properties of neighboring areas, they do not live up to the required level of knowledge and familiarity, which is a sufficient reason to get away from it and stick to your local area. Your stay in your area gives you the opportunity to learn about the real estate market, and this is the most important factor to reduce your risk and increase the likelihood of making a profit.
2. Investment in new or promising urban areas: the old saying that the three bases for investing in real estate is (location and location) is correct, also if you can buy in the promising areas, you are on a date with huge profits. But there are two kinds of fascinating sites that have proven to be really feasible..
And that’s about to occupy a great location, you can make a profit in both cases. In the neighboring areas, be sure to buy the real estate cheaper, and in this way any money will be spent on repairing it will return to you twice as much as three times the money you invested in it.
And when you buy a property that is not of great quality and in a privileged place, the advantage of a great place will support you and raise the price of the sale once it looks the property is in an acceptable form, and of course it is not easy to buy lower priced real estate in such a good place at a cheap price…
You will often find that the landlord is familiar with the matter, but in the case of real estate in a very bad situation you can have a good deal. In the promising vicinity, it is possible to invest in a range of real estate either alone or in conjunction with a group of buyers that will work to raise the neighbourhood, resulting in higher prices than you sometimes expect.
3. Invest in existing buildings, but be very cautious about real estate that may suffer from structural defects due to use or obsolescence, as well as expensive, and it is very important to stay away from investing in any real estate that suffers from fundamental problems, such as poor roof, bad drainage, or a system Corrupt electricity, the cost of repairing these problems will devour any profits you can make.
4. Cooperate with contractors and market experience, especially trusted artisans, as you always need their services and their advice, provided that you check your choice so that you reduce the cost price and hire reliable workers to work hard.
Promotion of one of the four elements of real estate marketing
Some (individual or company) in the real estate mix between real estate promotion and real estate marketing (they think) that they are the same thing, but there are err more when (thought) that marketing is part of the promotion, while the correct is the opposite, the promotion by economists is one element or The four pillars of marketing.
Senior investors in the real estate market or large companies that invest real estate in their activities are aware that marketing is taking from the media the most important theatre of its operations is often the backbone of the success or failure of the real estate investment project, companies do not venture to attribute these The job is for non-professionals.
The marketing activity consists of four basic elements identified by Prof. Jerome Macarte, professor of marketing at the University of Michigan, America, when he declared 1960 what has become famous worldwide to date with the marketing mix of marketing mix, all of which begins with the English letter P, namely: Marketing tools For a successful 4p’s policy)
Product (English: Product): It means what the market itself offers, especially the product, packaging and the range of services acquired by the buyer when purchased for the product.
Distribution or Location (English: place): arrangements that work to make the product accessible to the buyer and reach the target market.
Promotion (English: Promotion) means advertising, sales promotion, direct mail, enlightenment and seduction announcements, or a target market reminder about the presence and benefits of the product.
Price (in English: Price) means the price of the product in addition to other fees for delivery, permit, etc.
Marketing is the first and most important function of any other job to deal with buyers or real estate investors and build relationships with them on the basis of providing value to them and achieve their satisfaction, this is what represents the heart of the philosophy on which modern marketing is based, and arguably effective marketing is an element Critical to the success of any large or small organization operating on a local or global level.
Marketing processes and activities surround the human population throughout the day, as marketing often takes the media as a starting point to reach as many of the slides as possible targeted, and for real estate investment can easily note the momentum of news, press and advertising reports in newspapers and magazines Radio and television..
(promoted) under the parent umbrella (marketing) of the advantages (good) of real estate, price, location, services etc. which is attractive to the investor in order to take effective action to buy property in residential, commercial and other types, the investor in the real estate market must take into account the preparation of a plan Marketing is a priority for moving on the investment project.
Real Estate Marketing is one of the applied branches of marketing science and is a basic science of management science. His contribution to the success of real estate businesses is recognized by all, as successful real estate marketing leads to better production, in addition to satisfying customers, as well as leading to higher profits for real estate companies.
There is often confusion among many people between the concept of «Real estate Marketing» The concepts of «Real estate advertising» and «Promotion Real Estate», it is important to identify the components of real estate marketing, especially the central role of customers in real estate marketing.
Effective real estate marketing is often described as producing what can be sold from real estate, not selling what can be produced from real estate. Companies that sell what they can produce are geared towards the real estate product, as the real estate product takes the lead position for her, then think of the customers afterwards, as they consider marketing as just a process of persuading customers to buy.
Competition is one of the major variables in the local, regional and global real estate market that influences strategies: management, marketing, finance, and productivity of the real estate company. This is in addition to the type, form and level of competition in the real estate market. This reflects the nature of the dynamic interaction between the real estate company and the surrounding economic environment through which it operates.
It is very important to modernize the real estate view with the renaissance of the Internet in the region, and it is in this spirit that the website of the Aqarmap the latest way to view real estate online is to give an integrated image to choose your property without having to actually go to it.
The success of an individual in successful real estate investment is based on his decision alone. Neither a board of directors nor partners, if not accompanied by sufficient expertise and real success, the investor may expose itself to potential losses or may be subject to a waiting period that may be prolonged until prices recover.