Bucharest real estate - How to choose an apartment or a house for which you will have a high return
Investing in a house is definitely an important decision in every person’s life and it is done depending on several factors. There are a lot of personal reasons why we choose a house or an apartment, but it is also important to take into account how the property maintains and increases its value over time. Even more so when referring to the idea of investing in Bucharest real estate, this is often an investment that can generate a long-term income. Whether the property is bought with cash or purchased with the help of a loan, both options have their advantages for investment.
The reasons why the value of investment in Bucharest real estate can increase
Beyond the elements that ensure its value – area, location, neighborhood, compartmentalization, orientation, spaces – basically, the holistic assessment of the property itself – we should think about how certain elements can increase the long-term value of a property.
Property value increases when the benefits of owning it, in terms of rental income and capital gains, exceed the costs of owning and maintaining the property. Although the value of real estate typically increases over time, there are several fluctuations in it caused by challenges in the economic environment, as well as other causes that cannot be controlled – tax incentives, deductions, and subsidies, as well as government policies and laws, which can be to the advantage or disadvantage of the real estate application.
For example, inflation can increase the value of a property, which benefits real estate investors. On the other hand, infrastructure changes predictably affect real estate values, new roads, expansion of existing roads, and additional intersections or highway access, (previously inaccessible) open spaces and places can quickly increase property prices. At the same time, the use of a property changes during economic conversion. This change can be voluntary, such as when the property owner wants to increase rental or service income, or involuntary when the owner has no control over an economic event.
The elements that ensure the value of a property
When we buy an apartment or a house in Bucharest, we focus on several factors that influence its value. Thus, the area where they are located matters a lot, either for reasons related to accessibility to work, educational institutions or any other relevant proximity for residents/tenants. Also, the endowments of the neighborhood, its age and facilities anchored in reality, granted to a varied range of needs are key points that influence the purchase. Most of the time, people want a new home in which they don’t have to invest in renovations, but which has fresh, clean air and is easy to accommodate in the case of a rental. The partitioning and number of rooms will adapt to the profile of the ideal resident/tenant, their concerns, the number of family members and many other aspects.
Why access a buy-to-rent property from the Bucharest real estate range
A rental income property improves in value if the income it produces increases. Other things remaining the same, increasing a property’s cash flow will increase its resale value. That’s why buying a house or apartment to rent out can generate extra income for you, especially when you’re buying with money down. If you buy a property with the help of a bank loan, there can still be advantages: you pay a rate to the bank often much lower than the amount of monthly rent that the tenants pay to you because they live temporarily in your property.
Moreover, if you are going to buy a new apartment or house, with premium finishes and amenities for tenants, with a focus on comfort and increasing the quality of life, then there are many strengths to get your property rented quickly. The design, the compartmentalization, the generous spaces and windows, the terrace or the garden, as well as the smart technologies for which your building is prepared (if it is part of a neighborhood whose vision is focused on sustainability, cost efficiency, and the use of as few natural resources as possible ), will attract premium tenants, who seek to enjoy the values that living in such a building inspires. Thus, due to these strengths, the rent price will increase in addition to the market price.
A buy-to-rent investment would bring you a profit consisting of the sum of the monthly rent and the percentage by which the real estate price increases in that year. The price of apartments and houses is increasing from year to year, according to a study carried out by Imobiliare.ro. The included graphs show how the price of new apartments has increased by between 7 and 20% compared to last year (depending on the number of rooms).
When you choose to invest in a property within the h4l neighborhoods, you can add the property rent management service, if your property will be rented. Thus, you gain time and clarity in the bureaucratic activities surrounding the rental process. You can also opt for a personalized full or partial property management service: management of matters related to maintenance, maintenance, cleaning, as well as the relationship with suppliers and the tenant. The benefits of an investment in real estate will be visible in the short, medium and long term and will ensure a quick rental, in the case of the purchase of a property with premium features and amenities for the tenant.
This article also exists in Romanian here – Imobiliare București – Cum alegi un apartament sau o casă pentru care să ai un randament mare