Investing in real estate is an idea that sooner or later comes to mind to anyone who wants to get a good yield out of their savings.
The most common type of investment is acquiring a property and then renting it out, but there are other ways to make a profitable investment within the real estate sector.
In this article we are going to tell you how to invest successfully in real estate.
Buy, renovate, resell (house flipping)
If you want to generate some income quickly, and you know how to renovate an apartment in a short period of time, then this is a good option for you.
The best way to go about this is to find a property that can be renovated quickly, needing only a superficial renovation with no structural changes that will still bring about a big impact on it’s value.
However, you will need a team to help you define the maximum budget for the renovations. This way, you can save time and money on the work that needs to be done. Keep in mind that the more time you spend on the renovations, the more money it will cost you.
You have to take into account expenses and taxes, which will undoubtedly reduce your profitability, and also keep in mind that you will have to dedicate some time to the project if you want everything to go smoothly.
If this is the type of investment you want to make, we advise you to contact a qualified professional who can help you carry out this type of real estate transactions: you will save yourself a lot of money and hassle.
Buy to rent
This is the most common type of investment, because it is a good strategy if you want to obtain a steady income and a long-term return on your investment.
If you consider this strategy, it is important that you take into account both the maintenance costs and calculate carefully the cash flow, so as to avoid incurring in losses.
In addition, you should be very familiar with the neighbourhood where your property is located, as this is another key factor to the success of the investment.
Another question you have to ask yourself is whether you are going to manage the rental yourself, or if are you going to delegate to a property management agency.
To make this type of investment it is best that you heed the advice of real estate investment experts, who can help you make the calculations and find what best suits you.
Buying off-plan property
Buying a new build apartment or villa off-plan is a good long-term investment. Take into account that when acquiring the property you are buying it at today’s prices, but in the coming years you could resell it at a higher price, making a profit in the process.
Invest in commercial real estate
Another common option when someone is considering entering the world of real estate investments is to buy real estate dedicated to commercial purposes, such as offices and business premises.
Instead of buying a home and renting it out, you can buy a warehouse and make money by renting it out as an office. These types of investments can be very profitable, however this strategy is not for beginners.
Long distance properties
Many people would love to invest in real estate, but they find that prices in the cities where they live, such as Madrid or Barcelona, are too high. Some investors find a solution to this problem by investing in real estate hundreds of kilometres away from these big cities, where prices are lower and returns can be higher.
To do this successfully, you need to choose your market and find a qualified professional to help you with the purchase of your piece of real estate. The best option is to hire a Real Estate Personal Shopper: an expert who knows exactly how real estate investments work in his or her area, can help you find the best offer, inspect the homes for you and will help you take all the necessary steps to make a safe and profitable investment.
Are you ready to take the first step that will turn you into a successful real estate investor?