What you should consider before investing in real estate

According to London-based real estate blogger Ahmed Nashaat, while investing in real estate can be quite a lucrative endeavor, it almost always involves a substantial amount of funds.

In today's blog, he looks at some important things that people need to consider before investing in real estate.

Let’s start with distance. One of the more important things to think about before investing in real estate is understanding how far away you'd be willing to travel for it. For some individuals, this might mean saying no to properties that are only an hour or so out of the city, while others might be okay with driving four hours every day to get to their newest rental.

Another thing people need to consider before investing in real estate is the type of property they want. Some might be looking for a new home, while others might want an investment property that they can rent out until it's ready to sell again. A third group might forego a house or rental for a commercial property.

In these cases, understanding the type of property you want and what condition it's in is a significant step.

If you're going to purchase a home, do some research on how much they sell for in your desired location and neighborhood so that you know if there is room for negotiation. Are there new homes available that are perfect for what you're looking for? This knowledge will help you figure out how much to offer on an older home with potential repairs, etc., Ahmed Nashaat of London reminds everyone.