Apartments in Tallinn

Investing into real estate has been a preferred method of investment since the stock market crashes in the early 1900s. There are 4 main things to consider when investing into property; Yield, capital appreciation, price and timing.

Yield

Before investing into a property, perform a rental yield check with our net yield calculator and check to see if the property is worth consideration. With an interest-only mortgage, a simple view would be to compare the interest rate to your rental yield as this would determine if you are going to have left over cash or if you need to top up the mortgage with your own funds. However, interest-only mortgages are not always so common.

Capital appreciation

When considering capital appreciation, it is often very much down to the location and exclusivity of the property. For example, a property that is located in a city suburb, with lots of space for development surrounding it, will certainly appreciate less or at a slower rate than a confined premises located in a more prestigious location. Finding those areas with less development potential is usually a good idea. Look for property with confined space for development surrounding it, such as registered or historic buildings, beach front locations, city center, etc. Sometimes, less desirable parts of the city can have the most capital growth as the city expands and that area is redeveloped. If you like to gain some insight into local areas of potential, please contact us and we will be happy to assist you.

Price

Choosing a property situated in a desirable location will not always unsure success if you are paying an over-the-top purchase price. Be sure to research the local property price index and assess whether your chosen property is above or below the market price. Paying more will simply decrease your yield and take longer for it to appreciate. Always negotiate the price and if purchasing with cash or in bulk, make sure you secure a reasonable discount.

Timing

Timing is crucial when entering the market, as buying during a "high" will almost certainly negatively affect your rental yield and capital appreciation for the short-mid term. As hard as it may be to gauge, and as hard as it may be financially, try to invest at the end of a market depression for the best results. Here you are far more likely to pick up quality stock and far more likely to guarantee a healthy return and appreciation.

Investor Club

TallinnHome's' "Investor Club" is a discreet service for investors who are looking for interesting investment opportunities. TallinnHome selects attractive, interesting and exclusive offers from our partners and will send periodic e-mails to members with details of such offers. Many of the "Investor Club" properties are not available to the public or openly marketed, therefore by joining our "Investor Club" you will receive exclusive opportunities for investment and have an immediate investment advantage.