Just as a wizard pulls a rabbit out of a hat, a smart investor can get a bigger bill from a smaller one, but unlike the wizard, the investor’s case is not magic! The smart investor studies the market and makes good decisions.

It is also true that not all investments in real estate are the same, there are different types of investments for example investing in:

* Houses and apartments for sale to inhabit them

* Houses and apartments that you can rent in the long term

* Luxury condos as vacation rentals

* Lots and land in areas with great tendency

* Investment funds

* Offices and corporate buildings

* Among many others…

It is normal for some questions to arise: How can I ensure or guarantee my profitability? Or How can I obtain or improve returns and income? etc…

And although each investment is different, the most profitable and stable have followed some guidelines or principles that over time have shown us the reasons for the success of these investments, in addition, they have also taught us to predict (always with some risks) the future and profitability of real estate, here you will find 4 principles you should know to succeed in the real estate market:

1.- Location:

It is the most important point when it comes to real estate and it is about the most basic aspect of buying a property. It is a good idea to study emerging markets and consult with a real estate agent who has knowledge of the area, do not invest in properties that do not have access to services, good connectivity and basic needs.

Develop a general idea of where you would like to invest. Take a tour with your real estate advisor to explore the area, gather all the information of the area so you can make a smart decision. When talking about location it is smart to consider:

* Safety and standard of living

* Hospitals

* Shopping centers / Supermarkets

* Schools

* Restaurants

* Close to your work

* Social and tourist attractions

2.- Urbanization services

Having access to public services is vital to invest in any property:

* Drainage and sewerage

* Streets and sidewalks

* Electricity

* Access to clean water

* Telephone lines

* Internet access

If they do not have any of these basic services, it will cost you more money or you will have to wait for them to arrive at the property, which will affect your return on investment, as well as needing permits in case you want to install them, for example, wells and septic systems that in addition to money, they need time.

3.- Security

It is advisable to make a study of the area with your advisor to know if there are risks of hurricanes, floods, landslides or any other factor that may decrease or put at risk your return on investment or investment as such, for example: you have to pay attention to the rates of insecurity and crime in the area, your real estate agent most have this kind of knowledge of the are, which can help you increase your returns, avoid headaches and even lose the investment.

The safest properties are those that are within real estate projects and planned communities, since they are closed areas, they will give you a sense of community with your neighbors and have 24/7 security services, in addition to having amenities that make your stay in the place more comfortable.

It is important to take into account the economic or financial factor security of the city, state or country where you want to invest, to know it, it is a good idea to ask yourself if there are private, state or federal urbanization projects or commercial, residential or tourist development in the area; an example is the mega projects that the federal government has underway in the Riviera Maya for 2023 with the Mayan Train and the International Airport in Tulum to improve economic, tourist, commercial, mobility, etc. (here we leave you the full article about it: The Mayan Train And The Benefits In Real Estate For The Riviera Maya.) This gives confidence and security to the investor of growth in the economy, increases in vacation rentals and long and medium term and that without mentioning the added value that these large projects will bring.

4.- Analyze your Target Market

Different people are attracted to different types of real estate investment. A family may be interested in renting a house for a long period of time looking for larger spaces, while tourism with high purchasing power will look for a luxury condominium to better enjoy their vacation (As we explained in better detail in the article: Why Investing in a Second Home or Vacation Apartment Is An Excellent Idea?). On the other hand, if you want to rent offices, the growing business sector is always looking for new facilities.

Finally, today (thanks to the pandemic) there are more digital nomads and people who work from home (or from wherever they want, you only need a lap top and internet connection) and many of them prefer to do it in paradisiacal places for periods of 3 to 6 months, increasing incomes in the medium term.

By having your target market well analyzed it is easier to identify the ideal type of investment for you, however, to analyze your target market and know where you want to go it is necessary that you set your investment goals and objectives (each investor has different objectives), here I leave you with some questions that will help you establish your objectives as an investor:

– Do you want to invest to see short-term returns?

– Or have a good capital saved for retirement?

– Do you expect to sell as soon as possible?

– Are you looking for a property to rent it?Long, medium-term or vacation?

– Do you want to recover your capital quickly?

– Do you prefer to retain your property until it is the right time to sell?

– Are you looking to take advantage of it to turn it into a boutique hotel or a property that generates great income?

etc…

In conclusion, the principles in real estate described in this article have not changed over time and have taught us where success lies. Principles are something that as human beings we have followed for thousands of years, they have been there for a long time because they have always worked. The principles are universal and never change, what changes are the methods, forms and ways, but the principles never, that’s why it follows these principles in real estate that have outlined the success since its inception so that you have a successful real estate property.

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