Investing in real estate. Investments in real estate abroad

Investments in real estate are profitable and low-risk investments, since this financial instrument is always in demand and liquidated. The price for this asset is 90% of the time in an uptrend, which makes it possible to evaluate the potential profit from renting a property in the long term.

Benefits

Why is real estate investment considered a low-risk and more reliable option than, for example, a bank deposit? Before you invest your funds in this asset, you need to make sure of its payback.

• Housing for most people is the same basic commodity as food or clothing. That is why the demand for real estate is always, no matter what economic cataclysms around did not occur.
• The income from the lease of premises in the course of time increases, as the area annually becomes more expensive. This allows you to quickly pay back your investment.
• If you invest in a new building, then during its construction it is already possible to calculate your profit - as a rule, during this period, housing already rises in price by 30-40%.
• When buying real estate on credit from a developer or a bank, you get rid of inflation risk if you carefully study all the nuances of the contract. No matter how expensive the square meters, nor your salary rises, you will pay the same amount of money every month.

Disadvantages of investment in real estate

Before considering investing in real estate as a way to receive passive income, it is worth assessing the negative aspects of such an investment of its funds.

• If the additional living space did not get you by inheritance, then it will have to be purchased, and this is a significant financial waste that not everyone can afford. In addition to the initial investment, you will need to invest in repairing it, paying for utilities.
• Investing in real estate without proper analytical work, that is, without an analysis of its location, verification of the documentation of the land plot on which the building is erected, may prove to be extremely unprofitable. It is not uncommon for a new building to interfere with the occupants of surrounding houses, or a shop on the first floor of the building does not allow the grandmother to quietly sleep out of the apartment located on the second. This leads to mass protests, letters to the mayor's office, which can then forcefully force you to sell or re-qualify your additional living space.
• If you do not pay attention to all the bureaucratic subtleties, the legislation, it is quite possible that you will not be able to recoup your investments, since you can be the owner of real estate for large families or young families with appropriate benefits.

Investing in real estate for beginners

Residential and commercial real estate is in constant demand, which encourages many people to seek opportunities to earn through its leasing. Investing in real estate for teapots looks simple, but they need to thoroughly study this asset before trying to create any passive income.

What you need to know the beginner:

• One-room apartments are in great demand and are sold faster than others.
• The cost of rented housing is largely determined by its location and transport communications nearby.
• In addition to the initial investment, investing in real estate implies periodic expenses for the repair and restoration of spoiled or stolen property.
• You have to spend your time looking for lodgers, accepting rent, covering public services. If the living space is rented by the day or hourly, the passive income turns into an active one, which requires a lot of time.

Investing in real estate for dummies is the acquisition of a living space and renting it out for a long time. If there is not enough capital to buy housing, then you can buy it in a mortgage, pre-calculating, whether it is profitable under the current loan conditions and the average monthly rent.

The simplest option for a beginner is a partnership in the fund, whose specialists independently choose the area and turn it into an income tool. The big impact on the size of your profit is rendered by the fact that all the work is done by professionals.

How to choose an investment object

The choice of a property depends entirely on the size of your capital. Living space is always in demand, since a person needs a roof over his head the same way as food. Investing in commercial facilities requires great knowledge and efforts, because it is necessary to develop the concept of premises, reproduce the decoration in accordance with the class of real estate and its type.

The size of the potential income must be calculated based on its capabilities: in which city and district you can purchase a living space, what repairs do you make in it, will buy on credit or for cash. It is necessary to predict whether this settlement will expand in the future, how willingly people seek to get there, if this is not a metropolis with more opportunities for self-realization.

Purchase of real estate for renting

Investing in real estate for the purpose of further leasing is a stable passive income. It is more reasonable to buy a house with 1 or 2 rooms, or summer cottages near a summer resort and a ski resort. If you buy real estate in the city, then much attention should be paid to the condition and location of the house, its security. For many guests it is important to have parking or garages nearby. Transport communications are of great importance.

Buying summer cottages, you need to be prepared for the fact that a few months of the year they will be empty and do not bring income. When planning the purchase of real estate, consider the prospects for growth in its prices in subsequent years, its initial costs and periodic (repairs, cleaning after tenants). Cases of delay in rental payments and theft in rented apartments are not uncommon. Investing in real estate can be disadvantageous if the living space is not in demand for any reason, and there is no way to recoup the invested funds.

All this is especially important to consider if housing is purchased on credit. The rent should be more than the monthly bank payment. In addition, you need to take into account that you paid the initial fee. Otherwise, the return on the acquired asset will be negative in the first few years. The advantage of this investment is that a relatively small initial capital is required.

Investing in commercial real estate

Currently, commercial real estate brings more income than residential. This is due to the growing demand for offices, trading floors. In remote areas of cities, many private entrepreneurs are trying to open their own business, which encourages investors to invest in non-residential area.

Before you buy a room, you need to decide on its concept. Evaluate what is next to understand what in this area will be most in demand by potential consumers of goods and services. For example, there are no stores nearby, which means that you need to repair the premises taking into account the requirements for the appearance of the trading platform. It is worthwhile to understand that investments in commercial real estate will only yield income if you first consider all your actions.

Consider also that when buying a premise, it will take several months to reissue all the documents. Still some time it will be required for carrying out of repair work, registration of contracts on granting of municipal services. The restoration of business will begin only in the third year of its existence.

Forecasting the potential return on the asset, monitor the situation in the state, economic conditions, changes in the value of currencies, oil and gas prices. Also, there is always the possibility that the area will deteriorate, the tax system will change. Standards are constantly changing, and rented real estate should match, so before investing in it, you need to analyze a lot - only in this case the period of its operation can reach several tens of years.

How to start investing in real estate

Many want to have passive income, regardless of whether they have the initial capital for investment. Investing in real estate from scratch is real, if you are ready to spend your energy instead of money. A very advantageous option is the construction of garages with subsequent sale or leasing. You will invest in a plot of land and material for erecting garages, after which you will quickly pay back your investments and earn a solid additional amount that you can spend on purchasing a residential or commercial space.

Investments in real estate of the Russian Federation

The real estate market in Russia is developing quite rapidly. This is a huge country in which people are massively seeking to move to big cities, so investing in living space is very profitable. In megacities, commercial real estate is in demand, but the acquisition of such an asset will cost an unthinkable amount for most businessmen.

Foreign entrepreneurs consider investing in real estate in Russia a profitable business, but they make their demands on developers, standards of construction and maintenance of the area. The discrepancy between expectations and reality forces conservative businessmen to look for other assets for their investments, while aggressive ones actively acquire real estate in Russia.

Investments in real estate of Ukraine

The real estate of Ukraine is in great demand, however this phenomenon is irregular due to the unstable political and economic situation of this state. The income will bring the acquisition of a living space and renting it out for a long period and daily. In large cities it is reasonable to purchase commercial real estate, especially in sleeping areas, as the cities expand. The business with erection and realization of garages will be profitable, as many people have to leave their cars simply on the streets, which is very unsafe.

It is worth noting that investment in real estate in Ukraine is beneficial because the government has recently introduced a tax on income from deposits. In addition, in the economic crisis, many assets are frozen, and investors do not have the opportunity to withdraw their funds, despite all the complaints, protests and riots. Thus, the acquisition of an asset such as real estate is quite profitable in Ukraine.

Investments in real estate abroad

Investments in real estate abroad - this is certainly very profitable, but also requires a lot of material costs. The advantage of this investment is the economic stability of Western countries. However, in order to invest your money in foreign assets, you need to be a good analyst so as not to remain bankrupt, because nobody was ready for the fall of the US real estate market in 2007, when he was continuously growing up for several decades.

If you have sufficient capital, it is worth investing in the hotel business, but do not neglect the services of specialists who will help you reduce the risks of your investments. Be prepared for the fact that overseas very high requirements for quality, architecture of new buildings, as well as service.

Investing in the real estate market is a very reliable and profitable business, if you invest your money wisely. Apartments and commercial premises can not only be leased, but also resell, when the economic conditions are favored. In this area of business you can earn different methods of housing sales, the main thing is to start right.