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Unlike purchasing a home to live in, buying a property as an investment is a decision madto generate an income from the asset. As such, the things that might be vital when searching for a home may not be as important when considering an investment. For individuals looking for an investment option, real estate could be the right avenue. 

For all the potential benefits that investing in property can provide, a lot of would-be investors are hesitant to pursue this dream. Understandably, the economic uncertainty brought on by the pandemic can be off-putting, as can the emotional turmoil raised by the effects seen in communities worldwide.  

While emotion has a place in daily life, it should have no place when considering investments. As experienced property developer Michael Akkawi knows, real estate investment opportunities abound even during tough economic times. 

There are a few ways to make money by investing in real estate: 

  • Property Appreciation: This refers to an increase in the value of a property over time, which can happen due to a change in the market. For example, upgrading the property or having major developments built in the area close to a house can raise its value. 
  • Cash Flow Income: Investors who benefit from cash flow income do so by collecting regular rent from their residential or commercial tenants.  
  • Ancillary Property Income: With some properties, ancillary income is generated by having features such as laundry facilities in rental apartments or vending machines in commercial office buildings. In effect, these features operate like mini-businesses within the property, enabling the owner to benefit from additional revenue streams. 
  • Real Estate Related Income: This type of income is generally seen among property management companies, which earn a percentage of rent collected for managing a property, or property brokers, who earn a commission from sales or purchases. 

Investment Tips 

For the interested investor, the following tips can help them make the right decisions: 

  • Have Clear Goals: It’s vital to consider both the benefits and drawbacks of property investment, and contextualise these according to the investor’s needs. Knowing whether the investment fits their particular circumstances will help clarify the motivation and end goal of investing. 
  • Perform Due Diligence: There is no substitute for adequate preparation through research, which can provide a clear picture of the property market, available options, growth potential and running costs. 
  • Have a Timeframe: Setting a timeframe for the investment builds accountability and focuses the investor towards achieving their goal.