Three Ways To Maximise Your Roi When Purchasing Investment Property – Part 2

Word Count:
402

Summary:
Property Investment is growing in importance today in the global investment arena as more and more developing economies open up giving us the chance to make vast capital gains offshore. This article deals with how to buy property at a bargain so as to boost your ROI and continues from the previous article in our three part article series on how to maximise your ROI when purchasing investment property.

Most people, know the stock market adage, buy low sell high and attempt ...


Keywords:
property investment, property investing, investment property


Article Body:
Property Investment is growing in importance today in the global investment arena as more and more developing economies open up giving us the chance to make vast capital gains offshore. This article deals with how to buy property at a bargain so as to boost your ROI and continues from the previous article in our three part article series on how to maximise your ROI when purchasing investment property.

Most people, know the stock market adage, buy low sell high and attempt to apply it to many areas of their life. Most do not know the science of analyzing and quantifying this increase in prices and the real estate arena is no different. The best way to increase your ROI is to purchase a property when it is undervalued thus adopting Benjamin Grahams value investing model. Spend some time looking at the class of property that you wish to acquire and then focus on looking for a bargain.

Once you know what class of investment property you are in, spend some time looking at the statistical data. The more savvy investors would then perform technical analysis on the real estate purchasing and rental data to generate a graph. Note that there is no need to do this yourself and most real estate brokers that have investment property divisions, can generate the graphs for you. Spend some time asking why the rental is increasing and ascertain the risk factors to the rental market for your particular class of investment property.

The whole purpose of this mathematical analysis before you actually go down and “fall in love with the property” is to adopt a dissociated mindset and be a real estate fund manager mindset. This allows you to screen out loss making properties before you even get pressured by the real estate agents or potential sellers to purchase or take a look at their properties. Thus you should imagine your role is as one of acquiring property investment bargains which meet your mathematical investment criteria and which pass your physical inspection.

In conclusion, property investing like most other forms of investment, the money is made when buying the property. Spend some time figuring out what your property investment objectives are and focus on achieving them. This is a three part series and we will continue in the next article on buying a property in a hot rental area and boosting your property investment ROI.