When buying real estate, first define the outcome you want: a home of your own, a holiday place, rental income or a later sale. Each goal requires a different budget, timeframe and assessment of risk.
A city apartment and a resort apartment should not be selected using a single criterion. What matters is not only a location's popularity, but also who will use the particular property and the costs its owner will face.
Short-term and long-term rental
When assessing short-term rental, allow for seasonality, occupancy, daily servicing and frequent guest turnover. A high daily rate alone does not mean a high annual income.
For long-term rental, pay attention to the tenant's needs, the agreement, property maintenance and possible vacant periods. Both models involve costs and risks. Combining them is appropriate only when the specific property and management terms allow it.
Calculate the total cost
Add renovation, furniture and appliances to the apartment price if they are not included in the offer. Deduct management fees, cleaning, service charges, maintenance and applicable taxes from income. Check tax matters relating to your own circumstances with a qualified specialist.
Prepare several scenarios: what happens with lower occupancy, lower rent or an additional repair expense? These calculations can help you assess whether the purchase fits your resources.
Check the project and management agreement
Before purchasing, review the ownership documents, project permits, handover terms and the developer's experience. Use an independent specialist to help assess legal matters.
For management services, clarify reporting, fees, rules for the owner's personal use of the apartment and terms for ending the agreement. A known brand or varied facilities do not ensure a quick sale or guaranteed income.
Share your budget and goals with the CMG team so you can compare projects in the portfolio using specific criteria.
