Investments. So what does this mean anyway? You can go through the meaning of this word, rummage through Wikipedia, copy and paste the description and end there.
But we are not like that, which means that today we will take a closer look at this unusual and alluring word. And for example, let's take investments in real estate of the premium segment.
Buy for sale
Before considering the nuances, consider buying an apartment for subsequent sale. Let's assume that you have decided to buy an apartment in a new elite residential complex in order to make repairs as a result and sell it for a large sum. To do this, you need to understand how quickly you want to sell and how much you want to receive as a result. If the house is still under construction, then 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 put into operation, it can be easily sold for $ 2-110. It also depends on the quality of the repair, and many other factors: from the number of storeys to the location of the house and the residential complex itself in the city.
Purchase for 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 indicate? It all depends on the criteria for assessing housing. Location, number of storeys, repairs, area, number of rooms, even the presence of a freight elevator - absolutely everything can, to one degree or another, affect the setting of the rental price of your object.
Read more:: Renting out an apartment: how to write an ad correctly?
What if we talk about the "dark side" of investing? What are the pitfalls when buying an apartment for sale or rent?
Payback and possible risks
It is very important that the payback period does not stretch over 10-15 years. That is, the extreme option is if you manage to recover the entire amount invested in the object for a maximum of 10 years. For example, if you spent about $ 100 on the purchase of an apartment and its renovation, then the payback should be about $ 000 per year. If a year or two are added, then it can no longer be said that it was a profitable investment. Investing in real estate is a great investment option.
When it comes to selling, the situation is easier - the sooner you sell an apartment, the better. Here, even months of downtime do not benefit you, because a rather large amount was spent on the acquisition of the object, and therefore its early implementation will be most beneficial to you as an investor. Moving on to the risks, everything is simple here. Let the real estate market develop, but force majeure always happens. Changes in exchange rates, the political situation in the country, delaying the commissioning of a house or even freezing of construction, and much more can affect your investment. After all, even the construction of a house will take literally a year - you will already lose considerable sums. What can we say about 2 years or even a complete freeze of the project - in the latter case, you will simply lose all your funds that have been invested in the apartment.
Read more:: How to rent out 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 perfect option for your investment - contact the real estate agency "THECapital" - we will be happy to help you correctly, profitably and safely invest your money in real estate! By the way, if you are thinking about buying real estate, we recommend that you contact our professional luxury real estate agency THE Capital.
