The real estate acquires surplus value over time, therefore, not only is your money safe, but it will also generate more profit.
Valuations to take into account when investing in a property
- The first thing that the buyer must do is choose the type of property in which they want to invest, whether residential properties (apartments or houses), commercial (offices and premises) and / or industrial properties such as ships and lots.
- If you are considering investing in residential properties, you can expect annual net returns of 5-9% of the value of this property; while for investments in good commercial and local properties, returns ranging from 6 to 7% are obtained, and for offices, returns amount to up to 10%.
- It is important to point out that each type of property presents possible returns, subject to supply and demand at a given moment. It is recommended to evaluate several options (which are not beyond your budget) before making the decision, taking into account their location, conditions, long-term projection of property, liquidity of the asset, and possible returns that can be obtained.
- In the process of choosing the property in which you want to invest, it is time to analyze, decide and answer questions such as: What do I want? How do I create a long-term property portfolio? This can be achieved through fast deals, being on the lookout for opportunities, as there are people who sell by necessity, being forced to offer at low cost, and that is the ideal time to do business. These cases will not be so frequent, reason why, it is advisable to be with the eyes wide open to be able to identify them.
- Other possibilities to get this type of opportunity, is to enter the world of auctions, banking interventions and other difficult cases, which come to fruition, generate many benefits.
- If you are looking to generate long-term passive income, you should examine properties with a high development potential, where the initial price is low and the monthly rental income is as high as possible. As the years pass, by the development of the zone, that income will increase exponentially; thus, that 7 or 8% per year, at one time, can generate more profits than any other business.
- In the long term, this type of investment offers the best results, as properties are obtained with significant capital gains, which generate monthly income that you never imagined to obtain. Taking as a reference the above, it is evident that living on income is not impossible, but in order to be effective, you must save and seek the advice of professionals in goods, who will take you hand in hand throughout the process.