Second apartment

second apartment in Blue World City Islamabad can be a very interesting investment option. After all, if you are looking to increase your equity, the real estate market has great potential. The coronavirus pandemic results in a good time to invest in the real estate market, combined with an interest rate that is getting lower and lower. In addition, the purchase of the property brings excellent earning potentials, from the valuation of the asset for resale, such as rent.

So, if you have an investor profile that wants to increase equity with a good and safe opportunity, continue reading the post. We’ll show you when it might be worth investing in the second apartment.

Why is the housing market interesting during the pandemic?

There are specific reasons that show why investing in a second apartment during the pandemic can be very interesting. First, an unstable market washes people away from saving their money. Therefore, there is a readjustment of the markets and a drop in sales. For those who want to invest, it is a very interesting time to buy. Therefore, the freeze or possible fall in prices presents a great opportunity.

Another factor is the ease of financing. Not only is the interest rate very low, but banks and construction companies have an incentive to reheat the sector, bringing less demands and bureaucracy for those who want to finance the property. Finally, there is also the question of rent. This is a recurring, monthly and passive income, very valuable to any investor. As housing is a primary need, which people always need, the demand for a good property is high even in times of crisis.

Care when buying a second apartment

Even though buying a second property is quite advantageous, care must be taken when doing so. After all, it is a large investment with a focus on the long term. As with any investment, it is necessary to seek the greatest guarantee of a good business possible, so that the ROI is high.

Count on a reliable broker

As with the purchase of any property, the broker has a crucial role. Firstly, it is a regulated profession, which brings much more security to those who are buying or selling. But more importantly, he is the person most able to find a property that makes sense for the purpose of investing. The search for the second property is very different from the first and the broker who knows this helps the buyer to find the best investment and not necessarily the best place to live.

For example, assessments of the state of the property and the value of the property are even more important. Usually, when buying the first property, buyers don’t care so much about paying a little extra for it. After all, the biggest goal is to live and if the apartment is perfect, paying a little extra is no problem. While the first purchase is more emotional, the second property is more about investment, leading to a cooler and more calculated process. Therefore, the assessment of the property and property must be even more accurate.

Invest in a property with prospects for appreciation

Valuations are important, as the main objective is to choose properties that have great potential for appreciation. After all, this is one of the ways to obtain greater returns. Even if there is no immediate resale, the rent on a valuable property is naturally higher. Be aware of all the valuation factors, such as those located in neighborhoods with growth potential. In addition, the appreciation of real estate is a factor that should occur naturally in the near future, due to the recovery from the pandemic.

Complementing these external factors, there are also factors internal to the property that can lead to an appreciation. It is possible that the seller has made a wrong assessment, selling for less than the real value, it may be that he is in a hurry to sell, being willing to lower the price, the property may not be in perfect condition, but with simple work, it looks brand new. It is necessary to evaluate each case to recognize these opportunities.

Consider payment methods

The investment in the second apartment is even better when the payment method helps. There are interesting options ranging from the consortium to financing. If the first property is already paid, this process is easier, as there is no need to worry about the previous one. Even so, even if the option is to finance, it is possible to finance two properties at the same time without problems. In this case, the tips on how to find the best real estate financing remain.

Of course, you can use FGTS or SFI, but you can also negotiate financing directly with banks. If you have already bought the first property this way, the second one can be even easier. After all, it is likely that you have cultivated a good relationship with the bank, paying all installments on time and without major problems. Take advantage of this good relationship to negotiate even better rates.

Consider the desired financial returns

Finally, the most important thing is that you are ready to make an investment that makes sense with your expectations. As mentioned above, it may be that the property is purchased in order to generate immediate extra income, or with the valuation in mind, more focused on the long term. In the first case, a more ready property in a more valuable area is an option that makes more sense. In the second, you have more time to let the property appreciate itself or even do works.

In addition, you may be buying a second property with your family in mind. It can generate extra income and still be a source of leisure, working with a beach house on the coast that is rented during part of the year, but which is available if the family wants to vacation there. As always, it is the buyer who decides the ideal investment.

As was clear, the second apartment is an interesting option for those who want to invest and increase equity. Not only does the pandemic present interesting opportunities, but housing is a primary need, which people will always need. As it is a tangible asset, it is a relatively safe investment, but without giving up the potential for appreciation.

Did you like the post? What do you think about the second apartment? Leave your comment below with your experience!