If you want to invest in real estate, more precisely in investment properties, you should first explore how you will finance your investment. Equity, amortization, affordability and mortgages – there is plenty to consider when buying a property.
The first step is usually deciding what type of investment property you want to buy. Popular investment properties include apartment buildings, offices and commercial buildings. No matter which option you choose, you must carefully weigh up the opportunities and risks.
One important criterion is the valuation of the real estate. Investment properties are generally valued using the capitalized income method, which looks at various factors such as location, public transport connections and the economic environment. With the capitalized income method, the value of the property is based on the rental income. Specifically, the question is how much rental income a buyer can obtain from the property. Learn more about this topic in our article on returns from investment properties.