10 Tips for Investing in Real Estate
The GE Real Estate company, which has over $4 billion dollars of real estate investments in Mexico, some time ago composed a list of items it recommends taking into account when undertaking this type of investment. We found it very interesting and you can refer to it below:
1. Analyze the market. Before buying or lending money to a developer, look for market indicators. It may be that incomes have gone up over the past five years, but you have to know how much potential exists. If incomes are high but there are very few shops, and vacant offices or homes, then that is a sign that there still may be room for growth.
2. Diversify. It is important not to invest everything in the same market, for example, not to focus on Quintana Roo, but also pursue investments in Yucatán. For someone investing in real estate, buying more less-expensive homes and then turning around and renting them, rather than buying only one, might give rise to diversification.
3. Analyze the property. The condition of the property can be seen with the naked eye, but it is worth seeking advice from a civil engineer, because there are some things that can be missed on first inspection.
4. Make sure the papers are in order. Have a "check list" on hand, that includes Certificate of Non-Indebtedness for Potable Water, and Certificate of Non-Indebtedness of Property Tax, among other payments. A Lien Release is required in order for you to take actual possession of the property. Get support from a lawyer or a notary for the transaction.
5. In dealing with condominiums, make sure it is perfectly clear that you are the owner. Make sure the condominium regime is established.
6. Have the Title Deeds and Land Use Permits.
7. If the property is for rent/lease, make sure you have some type of security or guarantee and that it be honorable collateral. There are those who resort to sureties or bonds, but these are difficult to enforce.
8. If you are going to rent, get as many tenant references as you can.
9. Get a hold of the plans for the real property and make sure the notarial instruments specify the property boundaries.
10. When investing in something that is under construction, see that the construction company has bonds in order to ensure that the work is completed. Also get a hold of a copy of both the building permit and the wastewater (sewage) discharge permits.
Source: http://www.metroscubicos.com
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