The political and economic crisis has changed the behaviour of many investors. Those who planned to start investing in real estate are now asking themselves the question: how stable is the market and how much can you earn on it? We dispel your fears and give 4 tips on how an investor can get the maximum income from investments in real estate next year.
When investing in housing, choose properties with a high degree of completion
Buying a house in the design and construction phase is a risky decision, especially for complexes that are in an early stage of construction and where there is a high chance that construction will be delayed due to financial difficulties faced by the builders. However, this type of investment in the construction phase can be justified as the price of this property will increase once construction is completed.
Take advantage of subsidized mortgages
This is a good opportunity to get a mortgage loan at favourable terms. The year 2023 may not be so good any more. As long as mortgage assistance programmes have priority in the market, it makes sense to take out cheap loans.
Focus on commercial properties in urban areas
For many projects, the yield here is higher than from investments in apartments. There are many profitable strategies: from buying non-residential premises in new buildings to hotel rooms in large cities or resort areas. The main advantage of such facilities is the ability to earn not only on the growth in the cost per square meter, but also on leasing.
Investments in professionally managed apart-hotels allow investors to receive an annual income of 10-15% of the rent annually, and then profitably exit the project. Another advantage of the apartments is the relatively low entrance threshold due to the small minimum area of such objects.
New form of commercial real estate ownership
Building a small eco-hotel in the countryside takes only a few months and requires an initial investment of $50,000. The compensation period starts from the first year. The demand for this type of hotel will increase in the coming years. It offers a reason to travel and a desire to get away from the crowds for a while and get in touch with nature.
Commercial properties are more difficult to select and manage than non-commercial properties. Investors should consult experienced advisors or partners for these types of investments. Nevertheless, commercial properties are among the most profitable.