Steps to buy an investment property

Many people are interested in investing their money in different ways, and real estate is often one of the most common choices.  But before you invest in a property, you need to know how to choose a safe investment.  We will start by identifying secure investments in general.  The government was keen on linking the fifth Settlement to the center of Cairo so that investors and citizens would be encouraged to buy there through several main ways.  These included Axes Tantawi, Cairo-Suez road, ring road and Cairo-Ain Sukhna.  

There are a number of new cities near the fifth Settlement: 

• Nasr City 
• Future City 
• New Egypt
• The city of Rehab 
• The new administrative capital 

What are the steps to buy an investment property? 

We need to clarify some concepts first before knowing the steps to purchase an investment property 

What is secure Investment: 

An investment can be described as safe and reliable when it provides a good return with little risk.  In most cases, though , this type of investment has low immediate returns.  However, over time, significant returns can often be offered.  There are several safe ways to invest, including: 

• Buying gold:  Gold is a great investment option, but it can take a long time to see any real profits.  When you buy gold, choose 24-caliber gold bullion and buy it from a safe place. 
• Real Estate Investment funds (REITS):  Real estate ownership and management companies make them a great choice for investors who want to own property without the hassle of managing it.  You can withdraw this type of money any time the stock market is open. 
• Investing in real estate:  Buying a property and then resting it can be a great way to make money.  You will be able to earn a fixed return until the property price rises, at which point you can sell it for a higher return. 

Bank Depository Certificates:  A secure investment method with low risks and low returns.

Real Estate Investment and types: 

Buying and owning real estate is a satisfactory and profitable investment strategy, unlike other investment methods such as stocks and bonds.  Real estate investment refers to the purchase of real estate as an investment to save income, rather than being used as a residence or headquarters.  This property may be: 

•  Commercial property – located in areas where commercial activities are located, such as downtown, commercial areas or transportation centers 
•  Residential – residential units offered for sale or rent 
•  Land – Purchase of unexploited land and plan for development to be converted into a residential or commercial property 
•  Office buildings – from small businesses to large businesses.

There are many types of real estate investment, including: 

Investing through real estate rental: Investing in real estate through rent can be a great way to make money.  This investment method provides you with a flat income and an increase in the value of the property over time.  However, it takes a lot of patience to deal with the tenants and manage the repairs and maintenance yourself. 

Investing in real estate companies:  Purchasing and owning property through a real estate company can be an ideal solution for people who do not want to deal with tenants or any real estate related troubles.  This type of investment allows you to reap the benefits, even if the unit is vacant, thanks to our company management team and maintenance services.  The way this works is that you receive a return – even if it is less – on your investment when it doesn’t have tenants. 

Re-renewal of the  property: The renewal of the property involves buying a property for the purpose of repairing and improving it, and then selling it at a higher price.  By buying a property at a lower price, adding the cost of repair and refurbishment, and then selling at a higher price, this method can make quick profits.  However, this strategy requires real estate market expertise to know when and where you get the most out. 

Investment in commercial real estate:  Making a large investment in commercial real estate can be one of the best financial decisions you make with material returns that are often above average​​, and with the added advantage of being relatively low risk commercial real estate has become a very popular choice for many people.  However, before making a major investment, it is important to understand all the legal and administrative costs associated.especially if you make a major investment such as building a commercial finance or making a parking garage.

Real estate investment benefits: 

There are several reasons why people invest in real estate, including the following: 

• Maintaining the value of your money is important because when you buy a property, you keep the value of your money in the market against inflation, currency depreciation or any other problem. 
•  Control your investment: Investing in real estate gives you complete control over when and how to buy, rather than relying on financial markets. 
• Increase in rent value: In most markets, there are annual increases in rent value at a minimum of about 3%. This helps maintain the cash. 
• Renting your property is a great way to ensure a fairly regular cash flow. 

• Increases in value: Not only will you keep your money worth, but you are likely to generate higher returns because there is a constant rise in real estate prices. 
• Waiting often leads to a better deal: In the real estate world, you can often spend your time analyzing offers and choosing the best without having to make a decision immediately. 
• Few hurdles: The real estate world faces few hurdles, no employees needing salaries, no products that are corrupting, no relation to the rise and fall of stocks or the fluctuation of gold prices. 
• Anyone can be a successful real estate investor by choosing a drug correctly – it’s easy.

How to select an investment property 

Here are the steps to buy an investment property and some tips to help you decide when you decide to invest in property: 

• Set your investment goal: Want to keep your property longer and hope to sell it in the future, or look forward to reusing it and earning extra money over time or looking to live with it. 

•  Select a target market:  Before you can start a sales or rental campaign for your home, you need to first identify a target market.  This will help you determine who you are selling to and what kind of person is likely to be interested in investing in real estate.  

•  Choose the correct type of property:  When choosing a property to buy or rent, it is important to consider who you want to sell or rent later.  If you are buying the structure to rent or sell to families, keep in mind that the property is usually large enough for a family of 4 or 5 people.  If you’re looking for a place to live alone or with friends, consider choosing a studio  

 Select the right location or location: Choosing the right location for the property is important for two reasons: Your success as an investor and your goal.  However, the fact that a site is suitable for one or both of these reasons does not mean that it is the best choice for you. You must select a location according to your specific goals, whether near universities, companies or other desired regions.

Zones for real estate investment 

There are many wonderful places to invest in real estate in Egypt, and in greater Cairo in particular.  These include: 

• The new administrative capital:  With the city’s real estate prices soaring, especially with its upcoming opening, and with many major international projects currently under way 
• The fifth Cairo-New settlement is the most famous and important area for investment opportunities 
• Real estate prices rose in the cities of Badr and Al-Shurouk due to their proximity to the new administrative capital. 
• 6th of October City  is home to many important projects that increase the value of their properties.  One such project is the monorail. 

New cities have emerged throughout the Republic – New Mansoura, New Alamein and other cities integrated throughout the city.  These cities represent significant investment opportunities.