Investments. So what does this mean, anyway? You can look up the meaning of the word, search Wikipedia, copy and paste the description, and be done with it.
But we are not like that, which means that today we will take a closer look at this unusual and attractive word. And for example, let's take investments in real estate of the premium segment.
Purchase for sale
Before considering the nuances, consider the purchase of an apartment for further sale. Let's assume that you decide to buy an apartment in a new luxury residential complex in order to renovate it and sell it for a large amount. To do this, you need to understand how quickly you want to sell and what amount you want to receive as a result. If the house is still under construction, the object will be cheaper +- by 10%. It turns out that if you buy an apartment for $100, then, for example, in 000 years, when the house is commissioned, it can be easily sold for $2-110. Also, everything depends on the quality of repair and many other factors: from the number of floors to the location of the house and the residential complex itself in the city.
Purchase to rent
If we are talking about rent, then everything is a little different here. Yes, as with the purchase, the apartment will be 10-15% more expensive after the house is put into operation, but how to correctly understand what amount to specify? Here, everything depends on the housing evaluation criteria. Location, number of floors, renovation, area, number of rooms, even the presence of a freight elevator - everything can affect the rental price of your object to one degree or another.
See also:Renting an apartment: how to write an ad correctly?
And what if we talk about the "dark side" of investing? What can be pitfalls when buying an apartment for sale or rent?
Payback and possible risks
It is very important that the payback period does not stretch for 10-15 years. That is, the extreme option is if you manage to reimburse the entire amount invested in the object for a period of up to 10 years at most. For example, if you spent about $100 on buying an apartment and renovating it, the payback should be about $000 per year. If a year or two is added, then it can no longer be said that it was a profitable investment. Investing in real estate is a great option for investment.
In the matter of selling, the matter is easier - the sooner you sell the apartment, the better. Here, even months of downtime do not benefit you, because quite a large amount was spent on the acquisition of the object, and therefore its implementation as soon as possible will be most beneficial to you as an investor. If we go to the risks, then everything is simple. Let the real estate market develop, but force majeure always happens. A change in the exchange rate, the political situation in the country, the delay in putting the house into operation or even the freezing of construction, and many things can affect your investment. After all, even the construction of the house will take literally a year - you will already lose considerable sums. What can we say about 2 years or even about the complete freezing of the project - in the latter case, you will simply lose all your funds invested in the apartment.
See also:How to rent non-residential premises?
Carefully consider all the nuances before purchasing housing as an investment: the reputation of the developer, territoriality, the current situation on the stock exchanges, the political situation in the country and in the world as a whole - each of these points is very important and should not be neglected. And if you want to find the ideal option for your investment - contact the real estate agency "THECapital" - we will be happy to help you invest your money in real estate correctly, profitably and safely! By the way, if you are thinking about buying real estate, we recommend that you contact usprofessional luxury real estate agencyTHE Capital.
