Making Property Invesment Involves Many Action Steps:
All Begins with the End In Mind. On top of that the Intention to Invest, Receive Income and Appreciation / Growth By the Grace of Allah in a Halal Manner is Important.
- Rest of the Steps to consider, the expected monthly returns & expected growth rate
- Tenant profile
- Anticipated upsides & downsides
- Age and Condition of the property
- Potential growth and appreciation
- Enbloc Potentials
- Rezoning / Master Plan Changes which will Positively / Negatively will Impact the Property
- Investing by paying fully or investing with Islamic Property Finances
- Collectively Buying together with like minded investments
- Choosing the tenant or making sure the existing tenant not involves in any Haram Businesses, and other Tax and other Regulatory Conditions to be fulfilled and be aware of to be complied etc.,
All the Investments involves Risk, including property investments. Investors may sometimes reap the rewards of appreciation, income and some times may loss due to decrease in value, vacancy due to to tenant’s vacating the premises. These risks can be somewhat mitigated ( can’t be fully avoided), by choosing the property investments which has the highest upside potential and lowest downside potential.
The Concept of Higher the Risk, Higher the Returns applies in Property investments too, but they are considered Medium to Lower Risk and Returns due to the Physical Properties.