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 on time, depending on the market situation.
In addition, in order your money to “work” for you, it is necessary to decide what exactly you will invest.
The most attractive and popular type in the real estate market is the purchase of apartments. The advantage is that at a time when property prices are falling, rental prices on the contrary grow. Therefore, renting an apartment, you may get a profitable income.
During the selection of the property, its location is very important, because it depends on the amount of profit which 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 in one in provincial towns.
Investing in a property at the stage of its construction is no less profitable, since you may 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 it should be borne in mind that usually the apartment manages to sell the house faster.
Another profitable type of investment in real estate is an investment abroad, but for this you need to find a good specialist who is well acquainted with the specifics of the market of the country where you plan to invest.
How to protect yourself?
Investing in real estate is not only an obvious and profitable way to make a profit, but also certain risks, which are 100% difficult to protect against. And yet there are a few basic rules, following which you can avoid most of the difficulties and problems.
So, if you decide to purchase a property to rent it out, then first of all you should analyze in advance the situation with the market, the area where you plan to buy it. Since there are areas where buying property is not profitable.
If you are convinced that buying housing in this area is promising and have already found a suitable object for purchase, the next step is to check the property and its owner “cleanliness”, since real estate fraud is the most common.
The most risky today is investing in a new building. Therefore, carefully read the agreements with the developer and ask the lawyers who can tell you about the nuances of a particular transaction.
Unfortunately, today contracts are drawn up in such a way and there are no guarantees of the safety of investing funds in building. Since it is often stipulated in the contract that the terms for putting the house into operation can be transferred an unlimited number of times, and no penalties or compensation are provided for. Therefore, the only thing the buyer can hope for in this case is directly in the name of the developer.
Therefore, the choice of the developer should be approached very carefully and with responsibility, haste in this matter can only harm.
First, check the reliability of the developer; in particular, whether he/she has a lot of experience in the real estate market, how many objects he/she puts into operation, whether he/she rents his/her objects in time. It is especially true in today’s situation, when there are cases of cessation of construction of various objects in connection with the unstable financing of the developer, or the commissioning of an object completely unprepared to live in it.
Be sure to check the compliance of the existing project documentation of the developer and find out whether it is agreed with the relevant authorities, that is, whether this developer has a construction permit.
It is also useful to ask those who have already settled in the houses built by this developer, whether they stopped in time and if the residents are provided with all the promised and necessary conditions for living. It is also worth checking whether there were no complaints from apartment owners about a violation by the builder of safety regulations, sanitary, fire regulations, safety rules.