Compared to other types of investments, real estate investments have obvious advantages. First, by investing in real estate, you effectively protect your capital from depreciation. Secondly, such investments do not require any special knowledge and experience in this area from the investor. And most importantly, you can earn income regularly and in larger amounts than with a bank deposit
So, acquiring real estate whether residential or commercial orientation, you can already get a permanent income by renting this object. Further, by improving the state of the acquired property, you can increase its liquidity, which in the future will allow selling this property more expensive.
Another undoubted advantage of investing in real estate is a relatively lower risk of “burning out”. In contrast to the acquisition of securities (shares), investing in real estate is safer, since real estate is not subject to a sharp drop in price, and therefore there is practically no risk of losing to zero.
Investing in real estate will be profitable only if we consider it as a long-term project. After all, in order to really make good money, you need a lot of time. Therefore, it is extremely important to learn how to feel the trends of the market, in particular, have time to buy and sell real estate on time, depending on the market situation.
In addition, in order for your money to “work” for you, it is necessary to decide what exactly you will invest.
The most attractive and popular type of investment in the real estate market is the purchase of apartments. The advantage in this case is that at a time when property prices are falling, rental prices on the contrary grow. Therefore, renting an apartment, you can get a profitable income.
During the selection of the property for purchase, its location is very important, because it depends on the amount of profit that you can receive. Therefore, it is better to buy such property in large cities. At the same time, the availability of a convenient traffic interchange and a subway station is of great importance.
It is proved that investing in real estate, which is located in large cities, pays off quickly enough, in contrast to investing in real estate in provincial towns.
Investing in a property at the stage of its construction is no less profitable, since in this case you can save up to 50% of the total cost.
Investment in building a house is also a very profitable investment. In spite of the fact that the purchase of a land plot and the construction of a house require large capital investments, these costs will certainly pay off, especially if the house is located in a convenient and attractive place. But keep in mind that usually the apartment manages to sell faster house.
Another profitable type of investment in real estate is an investment in real estate abroad, but for this you need to find a good specialist who is well acquainted with the specifics of the real estate market of the country where you plan to invest.