Residential Property Investment

Residential property investment is highly popular with investors seeking to tap into booming real estate markets overseas. By carefully choosing the specific locations and residential properties you invest in, you can drastically increase the return on your investment – both short and long term.

At Día Soleado Invest, we provide serious investors like you with valuable information and professional advice that will allow you to build a strong and highly profitable residential property investment portfolio. Contact us to find out more..

Choosing property with maximum Capital Gains potential

The increase in value of your property over the years is called capital gains. Although this return on investment is long term, it is where the real money is usually made.

You should take into account both current and future market trends to choose residential property investments with the highest potential for appreciation.

One way to increase your potential capital gains is to choose property that could rise significantly in value after being refurbished or after you have made improvements (e.g. building a garage or an extra bedroom).

Buy-to-let – make your investment pay for itself

By following the Buy-to-Let Investment Model, you could make your residential property investment pay for itself, or even generate an immediate source of income.

Remember that it is important to have a good understanding of the rental market in the region where you are investing so that you buy property that promises a high rental income.

Also, take into account the needs and tastes of your prospective tenants (and not your own) when choosing and decorating your properties.

Weigh your options for maximum ROI

When investing in property, you should gauge your expected ROI (capital gains and rental income) against the amount of money you invest.

For example, two separate apartments could easily experience a greater increase in value over the years than a house that costs twice as much and is already in the expensive price range.

The same also holds when it comes to rental income. A property that costs twice the price might not rent for twice as much, in which case you would again be better off buying two smaller properties from an investment point of view.

Leverage your money and make more

One strategy to get a higher return on your investment is called leverage, where you use borrowed money as well as your own to finance the property. If you have €200,000 with which to build your residential property investment portfolio, you could invest it all in one property and pay cash.

However, if you borrowed, say, 75% of the purchase price, you would be able to buy four such properties instead and enjoy four times the capital growth on your investment. In this way, you stand to make a lot more money, even after taking into account the interest due on your mortgage.