6 characteristics of investment departments

The residential real estate market has proven to be stable over time, with the possibility of receiving good returns despite social crises. However, like all types of investment, it also has its risks, so the investor must choose the best option from a wide range of alternatives.

Investing in apartments to rent: what to look for?

In the department area we can maximize performance if, when investing to have the unit for rent, we evaluate the following characteristics of the property:

1. Location

Without a doubt, one of the most important tips for investing in apartments is to carefully study the location of the property.

The place is a key factor when investing in apartments for rent because the health, education and financial services located in the area drive the demand for rent, and even the cost of it, since they imply an improvement in the quality of life of the inhabitants.

2. Goodwill

Appreciation is the increase in property value over time. To know if an apartment will have a positive capital gain, it is necessary, first, to evaluate the conditions of its environment.

For example, according to a study by Mercado Libre, residential units near Metro Line 3 doubled in value.

However, we must also bear in mind other factors such as land availability, historical and expected capital gains, projected appreciation works, rental demand and age, type of property, among other variables.

3. Property status

Both in the apartments for investors and for people who buy them as a home, it is very important to check the general condition of the property, even when it is new.

In this way, we will avoid future problems of humidity, structure or design, which detract from the value of the property and make the task of leasing them complex.

4. Evaluate the security and common spaces of the building.

It is one of the advices to invest in apartments that is often overlooked. The tenants take into account the aesthetics of the building and the existence of common areas that improve habitability, such as swimming pools, panoramic terraces, gyms, children's games, etc.

For this reason, real estate projects that have the necessary equipment to satisfy the requirements of the demand should be chosen.

5. Cap Rate

This indicator, also known as Capitalization Rate, measures the relationship between the net return obtained and the investment made to buy the asset. In other words, it shows us the expected net profit during a given operating period.

It is an essential metric when buying apartments to rent, because it allows us to evaluate the profitability and viability of the purchase.

Of course, in the analysis we must carefully review the profitability index of the area where the property is located.

Juan Pablo Amenabar, manager of the Multifamily Area of Colliers International, points out that the average profit when investing in apartments for rent, according to a 2020 source, is in a range of 3.5% to 4.5% per year, but there are areas in the Metropolitan Region that can register higher figures.

6. Design according to the demands of the new consumer

The confinement, teleworking and virtual study derived from the pandemic, put new housing needs on the table.

Thus, properties that offer rooms for the home office, spacious environments, good ventilation, open spaces (balconies, terraces, etc.) and common areas that avoid residents' long journeys are beginning to be configured as a trend.

In fact, after the lack of refinement, the demand for apartments increased by 47% in the last months of 2020, showing a strong interest in those with a larger surface as a trend. It is important that we look for apartments for investment with these types of attributes, to satisfy the needs of the new landlord and, therefore, increase occupancy rates.

In blue world city Islamabad, we have a wide portfolio of apartments for investors, which have these characteristics and many more that ensure the performance of the property. In addition, we provide you with the best advice to reduce risks and increase performance.

Departments with immediate delivery, know your benefits.

The apartments that are in immediate delivery are those whose construction has been completed in its entirety. This means that they can be occupied immediately, allowing residents to start enjoying the benefits of their new home.

No waiting time.

Starting with the most obvious and, at the same time, one of its most important characteristics, the fact of buying an apartment with immediate delivery means that they are ready to be occupied automatically after you buy them. You will be able to move immediately without having to deal with some delays, paperwork and / or permits.

You will not be surprised.

As it is already built, you will have the advantage of checking if the apartment you want was realized as promised. With all the features such as footage, finish, distribution of spaces, etc. In this way, you will greatly reduce the risk of any unforeseen events.

Save on rent.

Generally, people who buy a new apartment live in rented properties. If they buy an apartment that is still under construction, they will have to wait a while to move (it can be months or more than a year), which will generate a double expense, since they will have to continue paying the rent and the fees from the Department. Buying the apartment with immediate delivery is the alternative to stop spending more.

Ease of Mortgage Credits

Getting a mortgage loan can be a process full of procedures and delays, if you buy a property with immediate delivery, you will be able to access this benefit more easily, since the bank will be able to quickly analyse the department for which the loan will be oriented and expedite the process.

Another important benefit is that the loan amounts for these projects are higher than for the projects that are still under construction.

Meet our project with immediate delivery.

If you are ready to move and want to do it as soon as possible, we present San Martín 514, in the heart of Pakistan. A building with apartments from 70 m² to 88 m², with 2 and 3 bedrooms. You will be able to move immediately and start living one step away from what you need most.

You will be very close to financial centres, clinics, shopping centres and with easy access to main roads such as Av. Brasil, Av. Javier Prado, and Av. Sucre.

Real estate companies add more 'smart' departments to their inventories.

In line with the new demands that the pandemic has brought with it in the real estate sector, the use of automation systems in new apartment projects has continued to gain ground and, therefore, more and more companies have decided to use this differential to attract more buyers.

This has been understood by Cosapi Inmobiliaria and at the end of last year it implemented 'smart' or intelligent solutions in two of the seven projects that they currently have for sale: Muvin in Lince and Epiqe in Surco.

"Of the 380 units that are part of these two projects, around 25% (almost 100 departments) have been implemented with digital solutions and because sometimes the technology looks a bit cold, we have decided to continue betting on the digital experience", assures Ernesto Cuzcano Cossi, real estate manager of the firm.

In this sense, in the coming months, two more projects from his current portfolio will also offer the "digital experience", although –as he points out– "the trend is that in two or three years all our projects will be equipped as 'smarthouses' and to this year we aim, at least, at twice the units we have today".

Functionalities and Costs

Regarding the characteristics that make a home become a 'smart house', the executive states that although the functionalities will depend on the "technological tastes" of the clients, the digital departments that Cosapi offers today come equipped with a basic 'echo dot' that It allows you to control music and lights, as well as providing you –among other services– with information about the weather.

"Thanks to the agreement we have signed with Smart house Peru, we are introducing these functionalities with Amazon's Alexa, which is a virtual assistant that allows you to generate unique experiences in your department either with the lights or with the curtains, although it can also cover more tasks" , Add.

Faced with this possibility, Cuzcano Cossi explains that because the 'echo dot' that they implement in their departments only provide basic functions, the owners have the option of adding more functionalities, although for this they will have to make an additional investment.

If opting for this possibility - he points out - the cost of having more benefits starts from a base price of S / 300 and may demand between S / 5,000 and S / 10,000 additional, although "everything will depend on the technological tastes of the clients ", He adds, clarifying that said payment can be made as part of the mortgage loan or can also be made in cash considering that" the purchase of an apartment usually takes between one or two years".

Auspicious Future

Regarding what could happen in the not-too-distant future with this trend, Ernesto Cuzcano points out that taking into account that the use of this type of tools is well developed worldwide, in the country there is still ample space for the "departments digitized" continue to gain ground.

"Siri from Apple, Alexa from Amazon and OK Google are virtual assistants that have an important role in the performance of these functionalities and are the main element to open the way to 'smarthouses' because they not only allow you to control the lights or have locks intelligent.

They also help you to optimize the use of energy and, today, as we spend more time in our homes, they generate more pleasant and comfortable spaces for you," he says.

Faced with these functionalities and considering that more real estate companies will continue to bet on 'smarthouses', at Cosapi Inmobiliaria they are convinced that the costs of their implementation will be reduced. "It is certain that over time, costs will improve, and prices will fall," says Cuzcano.