Most often, a potential investor, when buying a real estate object, chooses a residential property. To do this, he turns to real estate agencies, where they will tell you how much money should be spent on real estate, which investments are more profitable for investments, how quickly the costs of buying real estate can be recouped, where should you look for profitable real estate?
However, the investor should not blindly entrust his money to unverified people; he should delve into the essence of the matter himself.
Features of investing in residential real estate
Real estate experts recommend choosing real estate investments that should pay off 3-4 years after purchase. In most cases, the real estate market is represented by residential real estate with a payback period of 7-10 years. Residential real estate with a payback period of 7-10 years is best rented for daily rent.
When purchasing residential real estate, it is worth considering whether this housing is liquid, whether it can be sold quickly and without financial losses, if difficult times come.
It is important for an investor to remember that it is better not to invest money in fashionable objects, that is, in those objects where the crowd invests. The income from such investments will be minimal. For example, at this time, it is better to refuse to buy expensive apartments in capital cities. The payback period for expensive housing in the capital is at least 7 years.
Investing in real estate for rent in small provincial towns today is not able to bring significant profits. For an investor with an average wallet, it is best to buy commercial real estate, choosing one or two-room apartments of a standard project, with a small living space and a kitchen. The cost of two-room apartments is approximately in the same price segment as one-room apartments.
Investment experts recommend a more practical approach when choosing clients for their properties. In their opinion, it is more profitable to buy a residential two-room apartment and rent it out to stable tenants, that is, families with a child.
Since the child must be placed in a kindergarten or school, such tenants will be interested in a long-term stay in one place. Payments from families with children are regular.
In addition, the price of rental housing can be increased periodically, adjusting to inflation and receiving dividends.
Investing in residential real estate of economy class
Investing in economy class real estate will be affordable for investors with an average wallet. Such real estate is in the greatest demand.
Economy class housing is interesting both for rent and for sale. Payments for utility rates for commercial real estate of the economy class will not be exorbitant. Today, reselling small-sized housing is not difficult, unlike luxury apartments of two hundred square meters or more.
It should be remembered that investing in real estate is better in places with developed infrastructure. It is not necessary to find an apartment in the city center; it is expensive. For rent, it is better to buy two small apartments on the outskirts with good transport links and developed infrastructure.
Many people, arriving in the capital or large cities where there is a metro, are looking for an apartment for rent at a cheaper rate. It is desirable for the tenant that the property is located near metro stations.
If the property is located far from the metro, it should be remembered that transport links in the capital and large cities are already well developed, and in addition to the metro, you can move around the city mobile using other types of public transport.
Very often, tenants refuse to consider rental options if the house or entrance where the apartment is located is in a miserable or disrepairable state. It is best to rent a renovated apartment.
When buying a property, it is important for an investor to check all the necessary documents. Since there may be problems with the fact that not all former residents have left the apartment, minor children may be registered. There may also be rent arrears, which are automatically transferred to the new landlord.