AME Info published an article on tips for first time property investors based on a guide from Souqalmal.com.
So you’ve successfully made your investment, what next? What’s an investment without any returns? It’s a good idea to rent out your property and make money on your investment. Some of the costs that you will be incurring as a landlord include, but are not limited to mortgage repayments, maintenance charges, insurance, etc. These are definitely going to determine the rent you charge your tenants, which should ideally be enough to cover your costs and also make some gains.
One of the commonly used metrics, which can be used to assess the performance of real estate is capitalization rate. It is the ratio of the net cash flow to the property’s purchase price. Net cash flow is the net income you receive from the property after deducting the total expenses incurred. This ratio represents the returns you are making on your initial investment.
For full article go to AME Info