Investing in homes

Investing in homes has always been a good investment. Everyone knows that there will always be a need for housing. Especially with the continuous increase in the number of people on earth, there is actually a continuous housing shortage. And the further demand continues to rise, the more this also applies to house prices. With a smart investment in one or more homes, you can benefit from this.

Why invest in housing?

People invest in homes for different reasons. However, it can be said with a fair degree of certainty that there are certain equal underlying reasons. In general, it is a combination of the following points:

• High efficiency: A high return is something that a real estate investor is always looking for. On the one hand, we are talking about short-term returns. What does an investment yield in terms of annual rental income? At the same time, long-term returns also play an important role. An increase in value over time comes on top of the rental income. This makes it total return on investment in residential property is often high. Provided, of course, that you choose the right property. On average, you can expect a return of around 4 to 6% on an investment in a property.

   

• Relatively low risk: Risk also plays an important role when it comes to investing in real estate. In general, people like to keep the risk as low as possible. The more certain you are of a certain return, the better it is. It is also convenient that the risk involved in investing in a home is on the low side. Especially when you compare it to investing in shares or other forms of real estate, such as a shop or office building. Houses are always in demand. Especially the houses that are in good neighbourhoods, are in a relatively good condition and are located near big cities.

   

• Huge choice: Furthermore, the supply of homes is enormous these days. It means that, as a real estate investor, you can look very precisely for the property that meets your requirements. For example, in terms of the strong points at the previous advantage. A home in a good neighbourhood, in a good condition and in a desirable city is quickly a bull's-eye. In terms of investment, the chances of a good return are very high.

   

• Very accessible: Finally, investing in homes is very accessible today. For example, there are numerous ways to finance an investment in real estate. This means that you do not always have to come up with the full purchase price yourself. Instead, you look at the overall picture for your personal situation. What are your current possibilities? And what investment in a home is best suited to this?

What to consider when investing in a home?

Investing in a home is not something you do in a hurry. This is a decision you should think about carefully. Especially when quite large sums of money are involved. It would be a shame to make a decision too quickly. Therefore, try to keep the following points in mind when you choose to invest in a home:

• Personal budget: Start by determining your personal budget. You can do this, for example, by taking a good look at exactly what you can afford. Even with a limited budget, there are ways to invest in real estate. Only after you know exactly what your budget is for a property investment do you start looking for the properties. By doing so, you will not be in a financial pinch or unnecessarily short-changing yourself.

   

• Investment target: Following on from this, it is important to determine your investment objective. Why exactly are you planning to invest in a property? Do you want to renovate this property partly and then sell it again within a relatively short period of time? Or have you set your sights on a long-term investment? One where you will be collecting rental income and hope for a clear increase in value over the years? By determining what is applicable to your own situation, it is easier to choose a property that fits your purpose.

   

• Find good provider: Today, there are many good housing providers. This is good to know, so that you can immediately take the right steps. And that in a reliable, safe way. Good providers include Zimmo, Pararius and Funda. You will find properties in different price ranges. So there is something for every potential property investor that might be of interest.

   

• Eye on the future: When investing in a home, it is important to always keep an eye on the future. As briefly mentioned before, a house must be future-proof. This means, for example, that the house is in good condition. That there are no technical problems to be expected. In addition, the location of the house is crucial. Is the home located in a neighbourhood or area that people generally find attractive? And will this still be the case in 5, 10 and 20 years' time? There are numerous indicators that can help you with this. Think of proximity to a large city and growth in the number of inhabitants of the village or town itself.

Specific tips when investing in homes

In addition to the information already provided, there are a few more tips that will help you specifically. Keep the following in mind for a good investment:

• An immoweb check is interesting. See whether there is a lot for rent and how long it has been there.
• Employment is important. If there is a lot of industry or the like nearby, it is easier to rent out.
• Be careful with "the good tenant". Good, wealthy tenants are very good tenants, but after a few years they want to buy themselves. This can create a lot of turnover and you don't build up a constant income. Ideally, you want someone who treats your property well and rents for a very long time.
• It is best to choose materials or finishes that are suitable for rental. Expensive kitchen worktops, for example, are a bad investment because they cost a lot, provide little additional rental income and are difficult to maintain.

Invest in homes with Immotokens

There is a lot involved in investing in homes. A large group of people are therefore looking for a way to make it easier and more accessible. With the introduction of the Immotokens this way has come about. Using blockchain technology, it is now possible to digitise physical homes. This means that a unique, fully verifiable digital version of a physical property is created. This can then be divided into several pieces. You can invest from as little as €50 in the property of your choice. Spread your risk by choosing different properties, receive a monthly rental income and invest in a property of your choice. Become a real estate investor!