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Investing in real estate: a profitable investment for investors of different levels
Investing in real estate is considered one of the fastest ways in the market to multiply your capital and increase profitability on a permanent basis. Investing in foreign real estate allows you to do it more profitable and safe.
Investing in real estate: the benefits of investment
If we consider investments in real estate (apartments, for example) from the point of view of building a business in the market, it is worth noting that in the field you need certain skills, professional outlook and time. It is extremely important to develop a long-term strategy for high profitability, assess all the risks, tax burden, calculate the real costs of acquiring commercial properties, their maintenance and upkeep in general.
In addition, investing money in commercial real estate in the Ukrainian market, for example, may not bring the expected result due to the unstable economic situation and constant market fluctuations for apartments and other objects. But investing in real estate abroad is a good alternative. Especially profitable European, hotel and resort. And especially at the stage of construction and development of the excavation.
Consider the pros of the decision to invest in real estate investments
- Prices for real estate on the market, including hotel and commercial, in the sphere is constantly growing. Today you can buy an apartment for 50 thousand euros, and in a year you can sell it for 85 thousand euros. Objects at the stage of excavation or construction to acquire even more profitable. Such investments are reasonable, they are characterized by high returns.
- Investments in real estate and construction objects at the stage of excavation bring a much higher return than the interest from the invested deposit in the bank.
- Real estate objects (apartments, houses, lofts, townhouses and other housing), unlike services, will not disappear into thin air. At any time they can be used at your discretion.
- Investing in apartments or studios on the secondary real estate market does not carry any risks: the objects have already been built and commissioned. In turn, you can improve your living conditions and rent/sell the housing more expensive, while increasing profitability.
- If you have previously invested in real estate or construction projects at the excavation stage, and you own them, you can always ask the bank for a large loan against its collateral.
Note that you can invest in real estate both residential and hotel, resort, as well as commercial type, thereby automatically increasing the profitability of objects in the future.
Investing in foreign real estate: where is more profitable to invest?
Despite all the circumstances, the foreign real estate market remains stable and even develops, and investments in objects continue to come from different directions. For example, last year there was an active growth of prices for hotel resort, income housing (apartments, cottages) and commercial construction objects in Europe.
The highest price growth is observed in Germany and Italy. Decrease in the cost of commercial, hotel and residential real estate (especially apartments) is observed in Bulgaria, Croatia.
Investments this year it is profitable to invest in commercial, hotel, resort, residential (including luxury) real estate in Turkey and Thailand.
Also note that to invest in resort residential real estate is relevant in countries such as Spain, France, Cyprus, Greece, Montenegro and the UK. This is especially true in the southern regions, where in connection with the pandemic decreased housing prices. Apartments and houses here can be purchased with a good discount (up to 30%). And as soon as the restrictions will be removed – investments and the objects themselves will begin to actively work for you, increasing the profitability of the business.Investments in commercial real estate abroad
Of course, the most popular and relatively simple option is to invest in commercial real estate. Specifically, in resort, hotel, and luxury income property.
Yes, investing in the commercial real estate market abroad requires a much larger investment. However, and its profitability as a result is higher than from investing in residential houses and apartments.
Commercial objects do not include individual apartments and housing, but they are resort hotels, hotel, office buildings, commercial pavilions, warehouses and other related premises. For example, we offer investments in ready-made profitable Spanish business – commercial premises with a valid license to conduct discos. There are similar options in London (England).Investments in profitable real estate (especially resort) commercial plan, in contrast to investments in apartments, are characterized by the following advantages
- This is a highly profitable business. Especially if you make investments at the stage of excavation or construction. The objects of commercial and hotel plan are not cheap, but also pay off several times faster, subsequently bringing greater profitability.This is a highly profitable business. Especially if you make investments at the excavation or construction stage. Objects commercial and hotel plan are not cheap, but also pay off several times faster, subsequently bringing greater profitability.
- If you invest in profitable real estate for rent, then in the future all the worries of its maintenance falls on the shoulders of the tenant. Accordingly, you get rid of a large block of additional costs.
- The profitability of commercial property with already invested investments can be increased by reasonable tax structuring and attracting financing.
Undoubtedly, investing in hotel real estate and other resort commercial real estate is profitable and profitable. Especially that which is located in Turkey and Thailand. However, there are other options for investing money. In foreign housing, for example.
Investing in housing for rent
The simplest investment strategy is to invest in profitable foreign commercial housing. Its essence is the acquisition of residential real estate (apartment, house, apartments, room) for further renting.
Note that if you invest in profitable residential commercial properties (houses or apartments), you can rent them out:
- On a daily basis;
- On a long-term basis or year-round;
- On a seasonal basis.
And the most profitable are considered to be commercial apartments, with an area of 50 square meters. Of course, they initially require larger investments, but as a result they bring more money than small-sized objects and elite housing.
Investments in housing abroad for daily rental
The most highly profitable are residential apartments and houses for daily rent. This investment pays off quickly enough. However, there are nuances. For example, the need for constant personal presence. If this is not possible, then abroad, as a rule, hired a commercial agency that manages your object for a small percentage.
It is also worth considering that in some foreign countries it is necessary to obtain permission from the city government to rent an apartment. And in multi-storey housing – also from the neighbors. And somewhere and at all – there is a regional ban on renting. For example, in Barcelona. Before making an investment, we recommend to study this issue thoroughly, otherwise you risk to reduce the return to a minimum.
We recommend to calculate the profitability of such a business to take the average occupancy (15 days per month) and multiply by the price of daily rent of an apartment abroad, then subtract the cost of housing maintenance, agency services, etc. It will be immediately clear whether the investment is profitable in this case.Investing in residential apartments for seasonal rentals
Investing in a luxury residential apartment for seasonal rental is not the best option in terms of profitability. However, if the investment is invested correctly, for example, in commercial profitable resort housing during construction on the sea or ocean coast, in the mountains and other popular places, there will be no problems as such.
Investments in the real estate market for seasonal rentals are mainly focused on popular tourist destinations. Now it is Turkey and Thailand. Apartments on the first coastline of Phuket, for example, will be popular in the season and, accordingly, will provide a large yield.
Investing in long-term rental properties
The best option in terms of yield and profitability – investing in foreign apartments and renting them out on a long-term basis. By the way, the total return can be increased by obtaining a mortgage loan. Rates for non-residents are higher, but lower than in Kiev.
In addition, like investments in hotel real estate, investing in foreign commercial apartments brings additional profitability due to the constant growth of the currency against the hryvnia.
Investing in real estate abroad: what is important to know
Especially for their clients who want to increase profitability, study investments in the market and plan to make an investment in real estate abroad.
Hayat Estate has prepared some useful recommendations
- Research the price dynamics of the real estate market, including commercial real estate, over the past few years in the city/country where you plan to buy it. Before you make an investment and expect a return, it is important to understand whether the cost of housing there is rising, falling or at the same level.
- High-yielding real estate, as a rule, are located in large cities. This is where investments from all over the world often flow. They are easier to buy, sell and rent more expensively here.
- Study investments and evaluate the real estate market, its profitability, exclusively in U.S. dollars, not in local currency. And, especially, not in the currency of Ukraine.
- Determine the strategy and the desired yield. If you plan a long-term type of investment – make investments in real estate investments at the stage of excavation in the framework of construction, hotel real estate, residential real estate for rent. Short-term – investments in the secondary market or for resale.
- It is mandatory to assess the condition of the real estate. In addition to the main investment, calculate how much you will approximately need to invest in repairs and what kind of return you will eventually get.
- In residential real estate (apartments, studios, luxury homes) is better to invest in investments, if near it there is a good transport interchange, kindergartens, schools, stores, pharmacies and other important infrastructure.
- Both residential and profitable commercial real estate abroad, the cost falls in summer and increases in winter. Accordingly, investments in apartments is more profitable to make in summer (buy), sell – in winter.
- It is cheaper to invest in real estate at the stage of excavation and further construction. Yes, there are certain risks when in fact developed only the excavation. However, by choosing a reliable developer, you will get a good income on resale after the completion of construction.
If you are interested in effective investment of money in secondary market apartments and other profitable, including resort, commercial objects under construction, you need expert advice in Kiev, call the number listed on the website of Hayat Estate Agency. The consultant will provide all the information you are interested in investment.
We will help you to make your investments and increase your profitability wisely
If you are planning to invest in high-yield commercial or residential real estate (apartments), Hayat Estate in Kiev is ready to help you do it profitably and without unnecessary complications.
We will help you to find the best Phuket apartments in Thailand or commercial profitable object for rent in Poland or Germany, to invest in a resort luxury cottage in Cyprus or ready-made business in Georgia.
If you still have questions, the consultant is ready to provide all the latest information on investments. Call the number listed on the website or contact us via the proposed electronic form.