Types of investments into real estate
Investments into real estate can make not only rich people. Almost each of us in the life faces this question. One build a country house, others inherit housing and decide it to lease or sell, the third simply buy the apartment in the capital. Thus it is necessary to understand accurately, what not all operations with real estate carry to investments. The last are that are urged to bring in the income. Investments into real estate happen different types. They depend on object of investment (such as housing), the region (the capital, a resort), operation stages (site acquisitions under construction, purchase of ready object).Очень popular became recently investments in foreign real estate. Strikes a price range – from several thousand euros for a modest lodge in the small European city to million dollars for a magnificent mansion in any resort region on the seashore. It is possible to invest also money in Russia, for example, in country real estate.
So inhabitants of big cities arrive, in particular. And it is possible to get simply the apartment in the city – in native or any other settlement. In any case it will be possible for somebody to hand over it.
So, we will list the main types of investment in real estate.
1. Apartment purchase at the initial stage of construction for the purpose of its favorable resale after the completion of building. It at the same time and good way to earn at once large sum and, at the same time, the most risky investment. Unfortunately, in recent years everything grows number of "protracted constructions", construction companies go bankrupt, the number of swindlers increased. Besides, the economic situation can change sharply for some years and an investment it can appear not such favorable as it seemed initially.
2. Housing acquisition for the purpose of tenancy. It is the simplest and popular way of an investment of spare cash. Income of rent small, about five annual interest rates, but stable. However and there are "reefs". It is very important to choose good location, differently housing it will be more difficult to hand over. And as it is necessary to select carefully lodgers who can bring many efforts with untimely payments, the inaccurate relation to property, concern of neighbors.
3. Purchase of commercial real estate. Such investments at competent management can bring in very solid income. However the commercial real estate demands considerable financial costs not only of acquisition, but also at the first stage (the corresponding repair, installation of counters, carrying out communications and many other things). Besides it is necessary to be ready to different efforts, such as obtaining allowing documentation, maintaining accounts department, the tax reporting etc.
4. Other types – in houses, cottages etc. Here everything is similar to delivery or resale of apartments, however financial expenses (but also the income) are higher.