In general, about real estate investments

Many people today want to invest in resort real estate in Cyprus, Thailand,the UAE. This is quite profitable and at the same time this investment contains little risk. But before you invest in real estate, you need to decide what type of real estate you will buy. There are some factors that need to be taken into account before you buy.

How do you choose the place you will invest in?

The first thing to pay attention to is the location of the object relative to the places attractive to the potential tenant. Such places can be beaches, educational institutions, business districts, developed infrastructure, etc. It is better not to buy houses in areas that are somewhere far away, where it is impossible to sell or rent a house normally.
The state of housing. Pay special attention to this. If the apartment or house requires a lot of repairs, and the owner is heavily overpriced, it is better to look at other real estate options. If repairs are required, but the cost of a residential facility is low, you need to calculate what time and material resources you will have to spend, and calculate the payback period of the object, taking into account all costs. Very often it is more profitable to buy a house a little more expensive, but ready for operation.

Yield.

Before buying a house, you need to calculate what profit you will get from it. In addition to income, you should take into account the expenditure part. The consumables include:
  • Simple housing due to seasonality or other factors;
  • Repair and repair breakdowns related to the wear and tear of equipment and materials;
  • Payment of social services and maintenance of the house during downtime;
  • Paying for the services of the management company;
  • The cost of advertising the property;
  • Taxes (on profits and in a number of countries on real estate itself)
If the profit, taking into account all the costs you will suit – you can safely start to pick up a house or an apartment.

Types of real estate you can invest in:

A house or apartment in an apartment complex
Buying a property in an apartment complex is probably the most popular investment in housing. You can buy anything: luxury villas, economical townhouses, small apartments and chic penthouses. You can even buy an entire floor or an entire building in the complex. Of course, these investments are large, but the income from this is very substantial.
Shopping Centre
In some resort towns and places of large crowds of tourists investing in shopping malls is very popular. Some people buy only one pavilion, others buy up the entire mall. In addition to spending money on the property itself, you need to pay for the parking lot, and many other additional expenses. Investments in shopping centers require additional skills and market knowledge from the investor.
Warehouses and industrial buildings
This investment facility involves the purchase of premises that are used for storage of various goods and the displacement of production areas. The subsequent rental of warehouses directly depends on the success of the tenant’s business, so this type of rental property is considered the most unstable. As for renting industrial buildings, it is becoming more stable, as, usually, they are rented out for at least a year.

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