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All about investing in real estate: is it profitable, what are the pros and cons.

Investing in real estate can be considered a very profitable solution for many reasons.

This article covers the information what exactly attracts investors to invest in residential and non-residential real estate, and what are the pitfalls of building investment. You will also learn about what rules you need to consider when choosing an object and concluding a deal.

Advantages and Disadvantages of Investing in Real Estate

The advantages are:

  • High profitability. Very often, residential and non-residential real estate is purchased without a time limit, since it never comes out of the price.
  • An excellent option for making a profit. Real estate can be rented or sold profitably on the secondary market.
  • Does not require very large cash costs. In order to buy a house or apartment, you can apply for a loan or mortgage.
  • Big choice. You can invest your money in houses or apartments, land plots, foundations, commercial real estate.

 

Minuses:

  • Different supply and demand. The success of a purchase or resale depends entirely on the region, the general economic situation in the country. In small settlements, demand will always be low. A sudden inflation or crisis can devalue your investment.
  • Possible additional costs. Any real estate, residential or commercial, requires periodic maintenance, repairs, cleaning. It is also worth remembering about paying utility bills and taxes. Unexpected situations.
  • Unpleasant force majeure can always happen: robbery, flood, fire, vandalism.

Where can you invest your money?

  • Construction of new facilities.

  • Commercial real estate.

  • Land.

  • Residential objects.

  • Country cottages and houses.

What is the difference between investing in commercial and residential real estate?

The first and second investment options are more popular among private investors. Why is that? The reason is fewer risks and investments, as well as the ability to quickly recoup the money spent in a short period of time. Housing or office space can be successfully rented out to private entrepreneurs or small companies. In addition, there is a good opportunity for resale in the secondary market at an inflated price.

When investing in housing, it is important to have a layout, area, region in which the object is located. If you are thinking about investing in an apartment, then you need to take into account the condition of the house, the year the building was built, the number of storeys and the general view. Also, you need to take into account the legal point: debts for utilities, registered minor children. In this case, it is better to immediately contact an experienced notary and realtor.

Land

Investing in land is profitable because:

  1. It’s a long-term investments.
  2. Making a deal is not difficult.
  3. The land does not require repairs or modernization. There is only payment of land tax. It’s less likely to come across scammers.

Suburban construction

This option is beneficial precisely at the first stage – construction. But it is necessary to follow the changes in the legislation, and consult with a good notary. The alternative is to invest in ready-made houses in the suburbs with good infrastructure for resale.

Investments in other countries

One of the popular countries for real estate investment is Greece. According to Oksana Parsalidou, CEO of VGP, investments here are profitable because:

  1. Demand and price are constantly increasing.
  2. Buying a home gives you the opportunity to obtain a residence permit.
  3. Renting housing for tourists gives you a steady income.

Co-investor - the state

Investors can be not only ordinary citizens, but also the state. In this case, we see interaction with private structures or capital construction with public investment.

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