Investments in real estate – is investing money in a ready or under construction property in order to get income in the future. There is always demand for property because accommodation is a necessity for every person. The main types of income from real estate: passive – from giving for rent, and speculative – from resale.
Investing in real estate carries significantly less associated costs, unlike other types of small businesses.
For starting to earn with a real estate first of all you need to purchase a property. It can be an apartment or commercial property, like an office or storage room. Recently it is very popular to invest in foreign property. You can pay the whole new object cost at once, in installments or on credit. There is an option to buy properties under construction.
Investing in real estate has a number of positive factors:
– It is almost a break-even business, because a price of property cannot be under zero;
– Earnings can be both short-term and long-term;
– The real estate object can be used for personal purposes – for living or other;
– Real estate can be sold or donated;
– The low level of risks.
Investing in real estate has also some negative factors:
– A rental income is not too high;
– The risk of absence of tenants;
– Low liquidity;
– Additional costs, such as repairs, utilities, property taxes;
– The need for a sufficiently large initial capital;
– The risk of delays in completion on time when acquiring property under construction.