If there uses to be a way of preserving your capital and generate income, it is then by real estate investment, the principle of any investment is to earn, increase the contribution, and in a short time see it grow.
There are many ways to invest, but one of the safest is real estate investment. Entering the world of real estate marketing forces you to immerse yourself in a market that, although it may occasionally fluctuate, is quite safe. Some investors assume that this is a sector that always has new opportunities, especially since its operations revolve around essential goods.
Normally, real estate investments have a progressive growth, some can earn money with real estate that they bought at a price and after a while, they sell more expensive. The possibility of benefiting from a lease can also be a clear path to profit without much complexity.
Before the fall of the sector in 2008, investing in flats and houses represented a safe bet, real estate always tended to rise. The moments of the crisis made it clear that real estate investment is not infallible, however, there will always be avid investors who with good advice and without exceeding debts can obtain excellent profitability.
It is absolutely necessary for anyone to have a place to live and to have a safe roof for the whole family, so homes are the product that leads to real estate investments. However, the purchase of offices, commercial premises, garages, and rural houses begin to show highly competitive profitability.
One of the main advantages of real estate is that they offer you the opportunity to have several alternatives to earn money, the profitability of real estate is somewhat protected.
Some use this type of investment as a retirement fund to having additional long-term income thanks to continuous rent, others only retain the property and then capitalize a greater amount than their investment. In many cases, you can expect demand to rise and prices to improve for a good profit.
There is the possibility of delegating its administration to a third party, in which case you can contact a real estate company and have them manage your property. They have the capacity to sell or rent it under the most suitable conditions for you in exchange for a contract commission.
Tips for investing in real estate
When you start with the business to become an investor there are some mistakes that are common to make, either due to lack of knowledge of the market or trying to run before learning to walk, the idea is to take one step at a time.
Get into debt
We know that when you have at hand the possibility of contracting a loan to reinvest that money in a property, you do it in order to take advantage of the opportunity and that no one else will get ahead of you. However, this option is only good if it is economical and you will not end up paying twice more than what was paid on the property.
Examine many options
Even if you are going to buy only one property, be sure to review and consult many options before making a decision, the purpose is to choose the one that best suits your budget, but in the world of real estate investments, it is advisable not to rush.
Take all the time you need and wait for a really useful opportunity for your goals, do not rush.
Evaluate the location
Do not buy properties that do not have the potential to get tenants quickly, the apartments and houses located in high traffic areas and close to study centers and universities are very attractive.
If something is too cheap to be true that a defect must have, do not believe in incredible offers. Some properties appear to be a golden opportunity but it is best to investigate the reason for the low price.
If you are going to buy a property to be reformed, take it easy and first ask for an expert review, he will really know the complexity of the reform work and estimate the costs of its repair.
Ask the owner to allow you to review the documents of the house, verify the names and data that appear, compare the specifications of the property in the deeds with those provided by the owner.
Any commercial exchange is susceptible to negotiation, it is not necessary to demonstrate that the price established by the seller is the last word. Perhaps he has set a price above the estimate to settle to negotiate, try to show that you cannot assume his offer.
When someone who sells is willing to give in order to finalize the negotiation, remember that selling a property is not easy so if you are close to keeping the property, negotiating a little will not keep you from being the first option.
Investing in real estate has become synonymous with security due to its profitability, in this business the risks are usually low compared to other investment methods, although it will always depend on whether you make the right choice when you go shopping.
On average, once you make the investment in less than 3 years, you should obtain returns of up to 30%. The most common thing is that the rental of your property is the most comfortable and stable way to have an income constantly and ensure a fixed income, however, try to pay attention and care to the structure and its operation.
The main disadvantage of real estate investment is tax payments, so when setting a lease price keep them in mind so that you can pay these commitments with the profits generated by the property.