This is a good choice if you don't want to keep money in bank deposits or in a mattress at home.

There are two ways to invest:

• - for the subsequent rental of housing and receiving passive income.
• - to resell property at a higher price in order to obtain a one-time profit.

But, do not rush to run to buy all the apartments - first you need to analyze the features of this kind of investment, the pros and cons. The Homemetry portal contains a large database of properties that may be of interest to you.

Let's talk about varieties

In the field of investment, there are several investment options. You need to carefully study each of them to decide which one is right for you. So:

• invest in residential real estate. Here, an option is possible with passive rental income or the acquisition of square meters for subsequent resale;
• investment in commercial properties. An office, warehouse, retail space is bought for the same purpose as in the first option - for rent or resale.
• investing in real estate abroad. One of the types of shopping, gaining popularity in recent years. You can buy apartments in the resort cities of other countries to rent them out to tourists and be able, if desired, to also live there on your own during the holidays. The option of resale in the future is also being considered.
• investment in buildings under construction. You buy an apartment in a house in the early stages of construction at the lowest price and after the house is completed, you resell it for a completely different price.

More about the pros and cons

As with other types of investments, real estate has both strengths and weaknesses. Let's talk about them in more detail.

Advantages

This type of investment is considered the most reliable. Since housing is unlikely to completely depreciate, unlike other investment options (such as cryptocurrency, business, securities). Even with a possible fall in value, as a result, it will be insignificant, and then it will completely equate to the original indicator. You have the opportunity, having invested once, to receive passive income from renting out for a lifetime.

If necessary, you can use the apartments for your needs - move in and live in an apartment, open an institution or organize an office, and even use housing as collateral for a loan to start your own business. Investing in real estate is considered the most reliable and profitable, the risks are minimal. True, provided that you checked all the documents before purchasing.

Flaws

• Passive income is small compared to the cost of the apartment itself.
• Difficulties with the sale of housing. It is not always easy to sell housing, sometimes it can take from several months to several years.
• Additional investments. In addition to the cost of the apartment, you will also have to pay taxes, services of a notary, a real estate agent, if you use his services. You may also need to purchase furniture and appliances, or building materials for repairs, which is also not cheap.
• To invest, you need a rather large amount of money, starting from 20 thousand dollars.
• The risk of falling for scammers, facing forgery of documents, an unscrupulous developer, or even freezing construction and losing finances is also present.

Investments in residential real estate

The first thing you should pay attention to is that not every apartment is suitable for making money. There are a number of factors that can make housing investment attractive. Here we include:

• location,
• infrastructure development,
• road junction,
• layout,
• number of storeys,
• window view,
• building condition,
• availability of parking.

We also do not forget about the quality of both the house itself and the repair in the apartment. All these factors affect both the cost of renting a room and the price tag for its resale. In the first option, also note that you will have to periodically update the repair, which also involves periodic additional investment.

Investments in commercial properties

This option includes investments in offices, industrial, logistics, warehouse and retail premises. This investment option starts to make a profit much faster than it is very attractive to investors. It is also beneficial for making a profit in the long term, since often a lease agreement is drawn up for several years.

Another distinguishing feature is a high capitalization ratio ranging from 8 to 12 percent, while for residential real estate this figure is no more than 7%. Recall that the capitalization ratio shows the ratio of the price of an asset in the market to net income throughout the year. Thereverse address search makes it easy to find the right property for you.

When investing in commercial properties, it is also important to consider a number of factors before purchasing.

• Location is important for each type of real estate: convenient transport interchange, remoteness from communications directly affect demand and cost. As well as the quality of construction.
• In this investment option, it is important to have significant finances, over 40-80 thousand dollars.
• It is also worth remembering the utility nuances and tariffs for commercial premises.

Features of investment in housing abroad

This type of investment is currently considered very attractive. Prices for foreign real estate are not very different from housing of a similar class in their market. At the same time, in another country you get a more developed infrastructure and passive income from renting out is much higher.

However, there are risks too. For example, an investor does not have full awareness of the state of the market in the country where the objects of future investments are located, preferences in real estate, features of the real estate sector in the region, environmental situation and welfare.

It is also worth paying attention to the possibility of additional chores:

• the transaction procedure is much more complicated and consists of several stages - you may need an assistant on the spot;
• possible nuances in the legislation of another country;
• payment of all possible additional taxes, as well as the risk of having to pay hidden fees.

But, some of these problems are solvable - in order to analyze all the possible factors and features of the transaction, it is necessary to contact specialists who will provide all the necessary data and select the most advantageous offers anywhere in the world.

Investments in a house under construction

There are several options for investing in new buildings, depending on the stage at which the construction is.

Coordination of work

This is the earliest period when construction has not yet begun, but only documentation is being developed and a project is being prepared. During this period, the construction company is actively seeking funds and introducing advertising to attract potential customers.

During this period, the price of apartments is the lowest. But, at the same time, the risks at this stage are the most significant. Construction may end before it even starts the facility may be declared illegal, frozen, or terminated due to bankruptcy.

Excavation stage

Construction work has already begun, you can already see where the house will be located, read the documentation. Housing prices are still low and you can save up to 40% of the cost. Risks for investment have decreased, however, remain. Deadlines may be delayed, or the object may not be completed at all.

Construction final

The cost of apartments practically does not differ from the average market, however, in this case, the risks are minimal.

It is this period that the developer is trying to attract potential buyers, therefore, he is actively introducing flexible conditions, discount offers and installments. Thus, you can choose the best option for yourself!

Whatever you choose - carefully prepare for investments, study the reputation and history of the developer, his other houses, analyze all the documentation. Or contact the professionals from the agency who will help you make the right choice without financial risks.

Tips: how to reduce investment risks

We have prepared several recommendations that will help you protect yourself from possible financial losses and safely receive income from investments.

• The company you are buying from. Do not be too lazy to carefully check the documents, analyze the previous delivery of houses, what are the reviews about the company, the demand for apartments. Enlist the help of a lawyer if necessary!
• Purchased property. Carefully study housing - the quality of materials, communications, location, welfare and ecological situation of the area.
• Similar options. Be sure to compare objects with a similar square, location, quality of repair. It is worth being wary of options with too high or, conversely, low cost - you run the risk of running into scammers.