Have you been looking lately for a smart and most profitable way to invest the money you have been saving? Have you already considered real estate investment but been deterred by the fear of risky failure? Well, the good news is you are in the exact right place, for this comprehensive guide is all about the best property investment for beginners, tips, and tricks.
In this comprehensive guide, we will take you step by step through the entire process, starting with why you should invest your money in real estate, proceeding through the steps of the process, and concluding with professional starter tips.
Get ready, stay focused, and prepare your notes for a 15-minute read.
Advantages of real estate investment
Beginner’s Guide to Real Estate Investment
Investment for Beginners: Why Invest?
Before talking about the best property investment for beginners tips, we need to tackle the first things first. By going a step behind the real estate investment tips for starters, let us think first about why and how you should invest your money.
Some people still believe that saving money is more than enough, and they don’t think twice when it comes to investment options.
However, those people miss an important fact: inflation and its effect on money value. What does that mean? Simply put, if you save an amount of money for 1 year, its value will decrease over time as the inflation rate (in any country) stays constant (if it does not go up).
On the other hand, investing the same amount of money in any project gives you profit and returns on investment (ROI) by the end of that year. The logic behind that is making use of the project and generating income from the money you invested as its capital.
Nevertheless, if people were convinced by the importance of money investment, they get stuck at the various choices in which they can invest their money.
Yet, it is widely known and accepted that real estate investment is the best and most profitable investment anyone can start with.
That is why, before going into details about property investment for beginners, we will first get to know why real estate investment is bad unless done right, and the advantages and disadvantages of property investment.
Why Invest in Real Estate: Pros & Cons of Property Investment
In this section, we will tell you the pros and cons of property investment in general and especially in Egypt. The table below lists the pros and cons of property investment for beginners.
| Pros of Real Estate Investment | Cons of Real Estate Investment |
| Cash flow: the number one pro usually listed for anyone who intends to invest in real estate. Investing in real estate allows you to always keep a steady cash flow from the returns of the investment. | High market entry cost: you need a relatively large amount to pump in as capital (however, this can be solved through bank loans) |
| Tax benefits: taking advantage of the tax cuts most governments offer for investors to encourage real estate investment. | Volatility of the market: the real estate market in general is known to be volatile in whatever country since it depends on various factors. (However, this barrier is usually overcome with good market research and a thorough study for the market’s forecasting) |
| Capital appreciation: despite inflation being a negative indicator, yet, it guarantees that the value of your asset will keep appreciating and never depreciating over time. | Issue of liquidity: real estate investment does not offer liquidity, meaning that if, for any reason, you need instant cash, you would need to wait for your asset to be sold, which is usually a long-term process. (This barrier is usually overcome by diversifying your money over various assets.) |
Is Real Estate Investment a Good Idea in Egypt?
Now, talking about those who want to start real estate investment in Egypt, we want to assure you that the real estate market in Egypt is stable and open for your new investment.
That is why, if you are a beginner and want to start investing in Egypt, that’s a good idea, especially with recent market trends that show Egypt is far from hitting an Egyptian real estate bubble.
Now that you know the pros and cons of real estate investment, we can start talking about the guide for property investment for beginners.
Property Investment 101: The Full Guide for Beginners
Now, everything is set, you know the pros and cons of real estate investment, and you are assured that the real estate market in Egypt is stable. What’s missing? The steps of the process.
The property investment for beginners process includes the following major steps(the process usually has more steps; however, those are more than enough for a start):
- Educating yourself and getting well-informed about the major terms and processes of the field.
- Doing extensive market research to understand the market you are entering.
- Choosing between the various real estate investment options.
- Picking the property type you would like to invest in.
- Deciding on the location where you will get the property to invest in.
We will get to know each of those steps in a bit of detail in the following sections.
Property Investment for Beginners: Start with the “What”
In order to be able to excel in any field, you should be well-informed about its main concepts, terms, and processes. You can start by studying basic concepts and terms of real estate, such as ROI, property management, and property type.
Also, you should not hesitate to seek professional help if you have any questions or are facing any obstacles. You can refer to a professional real estate agent, or read more about what other people say about the issue you are facing. You can also read this guide on the top real estate FAQs.
Real Estate Investing for Beginners: Market Research
Market research is the key element behind the success of any project, whether it be real estate or any other. When talking about real estate market research, you should think about the why and the how.
As for why you should do real estate market research, the answer is:
- Know the probable market risks and mitigate them
- Get to know your options and explore opportunities in the market
- Explore the market trends, prices, and patterns
While as for how to do real estate market research, you can:
- Read annual reports published by trusted organizations
- Get expert help from real estate agents and companies
- Ask other people who started their journey in real estate investment
Property Investment for Beginners: Pick Your Options
By the word “investment options“, we mean the various ways you can choose to invest your money in real estate. Those options include the following:
- House flipping: invest in properties by buying them, renovating them, and then selling them for a higher price
- Renting properties: buy a property that you can rent and get rental income (pro tip: you can buy a large property and use a small part of it -one room or something- and rent the remaining part)
- Fractional investment: buying a share in a property and getting its profits on its exit date. This can be done through professional platforms such as Nawy Shares (which we will talk about in detail later)
Real Estate Investing for Beginners: Picking the Property Type
One major question in real estate investment for beginners is the property type you will pump your money in. By the property type, we mean whether it is residential or commercial, and the question is which is better and what to pick?
Simply put, residential real estate is the investment of your money in properties that are used to be homes, such as villas and apartments.
On the other hand, commercial real estate is the investment in units that are usually used for commercial purposes, whether it be retail stores, clinics, offices, or restaurants.
Commercial Real Estate VS Residential Real Estate: Where to Start?
Property Investment for Beginners: Choose Your Location
Lastly, the final step towards the best real estate investment decision is picking the most suitable location where the property you will invest in is located. The location has a great effect on the process since there are certain areas known for a high real estate return on investment.
The areas known for being a great investment spot include, but are not limited to, the following:
- New Cairo City
- New Administrative Capital City
- 6 October City
- El Sheikh Zayed City
- North Coast – Sahel
By now, you know all the steps for a successful beginning in real estate investment. However, you still need to know an insider’s guide on the best tips and tricks for property investment for beginners, which we will tackle in the following section.
Property Investment for Beginners: Tips & Tricks
This guide cannot be complete without giving you an insider’s cheat sheet on the most brilliant tips and tricks before starting your journey in real estate investment. Property investment for beginners tips and tricks include the following:
- Start small to be able to secure your capital and funds
- Diversify your investment portfolio to eradicate market volatility risks
- Try to buy during pre-launch phases since prices are lower in these phases
- Focus on projects and areas with high rental demand
- Get professional help from well-known platforms and real estate agents
- Consider maintenance and property management costs in case of listing properties for rent
- Make sure to surround yourself with a network of beginner real estate investors to share experience and get practical insights
Before coming to a conclusion, let us give you a pro tip on real estate investment for beginners: investing in property shares.
Investment for Beginners Pro Tip: Invest in Property Shares
If you want to start investing but are short on budget, don’t worry, you still have an option to buy your share in a shared real estate investment, or as known “fractional investment”.
Nawy Shares is a smart platform that specializes in offering various individuals the chance to buy a share in a property to invest in. Later, your share generates a high return on investment. How?
Nawy Shares divides the property into various shares, and you can buy as many shares as you want. Later, when the property is sold or its exit date arrives, you get your share of the profit.
Nawy Shares is a brilliant chance for investment for those who want to diversify their investment portfolio and for those who want to start small as well.
Start Investing Now!
Throughout the article, you’ve got to know why you should invest your money, what’s the best investment option, the pros & cons of real estate investment, and how to start your journey. It is high time now you took action and started investing.
Thanks to the wide selection of property options listed on Nawy’s property listing platforms (website or mobile application), your investment options are countless.
Explore the widest investment property options
FAQs
How do you invest in property?
By choosing between flipping houses, fractional investment, and rental investment.
Why is investing in real estate good?
Investing in real estate has many pros, such as getting a high ROI, steady cash flow, and taking advantage of tax cuts.
How to get into property investment?
You can start small by fractional investment when you buy a share in a property, and get its profit when the property is sold.
How to succeed in real estate investing?
Do extensive market research, start small, and focus on areas with high rental demand.
