When making such an important investment, we must take into account the many aspects necessary as well as the market situation to achieve a successful real estate investment, which is not always easy.
In this article we leave you with 3 strategies for investing in real estate, although there are more effective strategies that require more technical knowledge.
If you are lost and need someone with experience in the sector to guide you, do not hesitate to visit our range of services.
Buying a property to rent it out
Buying a property at a profitable and affordable price allows us to rent it out and receive recurring income.
This type of investment is quite interesting as it allows you to earn monthly income without having to invest a lot of time.
Before investing in any property, you should confirm the market situation.
Buying a property to rent it out is a great idea to diversify your income. If all this sounds complicated and you need someone with experience, don’t hesitate:
Renting a property offers several advantages
It allows you to receive recurring and relatively passive income and although it has its risks it has advantages such as:
A good profitability
Renting offers greater financial rewards than investing any amount of money in a fixed income investment.
What is clear to us is that a well-researched investment in real estate, based on data rather than personal feelings and preferences, will lead to a successful investment.
Wide range of options
The different rental options in real estate investment give investors the flexibility to choose which option suits their needs, allowing them to find the ideal rental option for them.
You can buy different properties, or choose to buy just one type of property and do the same deal over and over again.
Looking to self-finance the property
Paying the mortgage through renting is a great way to partially or fully self-finance the purchase of a property.
This will generate relatively passive income in the long term, although in the short term the rental money is reinvested in the mortgage.
Buying a property to sell
In this case what we are doing is acquiring real estate, not for the purpose of renting it out, but to increase its value over time.
This way of making money with real estate requires patience (as you usually have to wait years to see high capital gains), but it can be very profitable if the asset has a strong appreciation potential.
For this type of investment it is very important to correctly select the location of the property as properties often appreciate in value based on their location.
Buying a property to renovate and sell
If your goal in investing in real estate is to make money in a short period of time, you want to focus on refurbishing assets that are in poor condition and reselling them at market prices or preferably above market prices. market price.
The worse the property is, the more renovations will have to be done, but in general, the higher the capital gains that can be achieved.
Remember that most people are scared of building work and renovation and are willing to pay more for a fully refurbished property.
The great thing about buying, renovating and selling is that, in most cases, you can resell the property as soon as the renovation is complete, making a substantial capital gain.
The more you negotiate the purchase price and the amount of asset renovation, the greater the capital gain.
This is a very profitable way to invest in real estate. But also keep in mind that this requires a good knowledge of the market and a competent and trustworthy renovation team.
If you cannot find an efficient and reliable renovation team for your property, let our team advise you. Our property investment company on the Costa del Sol to avoid unexpected problems and surprises.
