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Factors to consider when investing in real estate

According to the Census, 70% of rental properties are owned by individual investors. So what are the factors influencing real estate investing? while location is one of the first that come to mind when considering what a good real estate income property. As an investor, you can’t only think about one factor, there is a lot more to it. In such a fast changing industry, you cannot miss anything in order to stay on top of future trends, especially if you are new in real estate investing. Here we are gonna talk about 3 of the most important factors for real estate investing; property location, property value, and new vs existing property.


Where the house is located is one of the most important factors. Is the property close to schools, parks, stores and other amenities? According to a report by the National Association of Realtors 26% of recent homeowners are influenced by quality of the school district when they deciding where to buy a house.  Things like the ones mentioned above will have a huge impact on profitability. Also, a property that right now is in a quiet area might someday be near a noisy factory, so your investment property might not be in a desirable area later on. Thinking short and long term is important.

Property value

Several things will depend on the real estate valuation, factors such as; listing price, financing, taxes and insurance. Among the most important. When buying an investment property, the buyer needs to consider the cost of renovating the property to put it back to market or the cost of keeping it for a while before deciding what to do with it. Working on all the numbers is crucial to make a good and informed decision when buying an investment house. The average California home is $716,909, up 3.2% over the past year. Like a general rule, you can always expect the value of properties to go up overtime, even after a drop in price.

New vs existing property 

A new property will cost more but it can also be attractive since you will be able to customize everything the way you want, whereas in an existing construction you will find yourself restrained to what the existing structure has. On the other hand, a new construction will take more time to be ready to be in the market and also can cost a lot more. While a property renovation can take less time and also decrease your cost. The median sales price of an existing house was $391,200 in April 2022, comparing to $450,600 which was the price of a new construction the same month. Both a new and an existing property have advantages and disadvantages and considering all relevant factors is important.

Real estate is a good way to diversify your portfolio and have a steady cash flow. Also, investing is one of the best ways to build wealth. Among all the variables that can potentially hurt or add value to your investment; location, value of the property and, new vs existing property are a few of the most important and relevant.

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