Why to invest in real estate?
Many wonder if it is a good idea to invest in real estate. The truth is, investments in real estate has always been a good idea. Whether for rent, to resell, or simply as a future investment, the real estate sector hides a good long-term profitability.In this post, we will explain the different reasons and points of view about the viability of investments in real estate. It is a sector that is in constant movement in recent years, so we consider it interesting to analyze your situation.
Constant rise in prices of the real estate sector
Although the price of the sector will be a topic of conversation in another post later, it should be noted that currently, is in a constant rise, more specifically, it is expected that the price of housing rise by 7% during the 2017. According to the National Statistics Institute, real estate transactions have grown by 20% in the first quarter of 2017 compared to the previous year.This rise may be due to the exhaustion of cheap and quality housing, which combined with the slow construction sector, the result of the previous crisis, give rise to a rise in prices that lurks in a future housing bubble, if you continue with This rythm.
Invest in properties to resell
One of the most profitable options to obtain profitability in this sector, is to resell. In the first place, in the face of the unstoppable rise in prices, only the time it takes to sell the property is getting a profit. If to this, we add an improvement of the property, it can give rise to some returns that surpass any available financial tool, and with a very low risk.How to achieve the desired profitability?The best way to maximize your investment, is to look for real estate that needs a reform, either comprehensive or partial. In this way, you get the possibility of buying a property at a slightly lower price.Once you have the property, the best option is to hire a company specialized in the construction sector that will advise you on the improvement of the property and then execute the work. In this way, you get a return for the increase in the price of the house, another plus for the purchase and the gain that is attributed to the improvement of the property after its reform.
Buy a property for rent
The rental of a property can bring more than 5% net return per year. It is a fact that this is probably the most profitable option if you are wondering how to invest your savings, although it may present some problems such as difficulties in finding the right tenants, or the need for a large initial outlay.However, in the long term, renting a property has always been one of the best options if what you want is to obtain a fixed capital, with low risk and for a long period of time.
Undoubtedly, investing in real estate is betting on a safe return without risk. Be sure to do a good planning before taking any action. From La Safor Builders, we recommend that you seek advice in all phases of the investment process you plan to carry out in order to obtain the best return.