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How to Get Started with Real Estate Investments? | Real estate for beginners
Currently, the investment trend is to buy, looking for competitive prices, making the investment profitable by renting and, finally, selling. In favor of this scheme lies the fact that the generation of millennials has a predilection for rented housing. You can buy new work on plan with effective revaluation at the time of deeding the property. Buying second-hand properties to rent is also a very profitable option. According to various studies, the average return on investment in rental housing is 4.4% per year. To this income must be added the revaluation rate of the property itself, for which the percentage would rise above 8%. This income is higher compared to savings and investment banking alternatives. But a flat to rent in an exclusive area does not always give more income. When investing it is important to assess the location of the property . Along with the location, to understand how to invest successfully in the real estate market you should: Invest in second-hand homes One in four second-hand homes is bought as an investment. Normally, well-located flats are sought in cities, at a demolition price to carry out a reform . Returns on this investment are reported between 5-6%. It can be much more profitable to invest in small, well-located properties. With the same budget to invest in new construction, it is possible to buy two old ones to reform. Keep in mind that the rental income that you can get for a new one is not much higher than that of a remodeled one. By having two second-hand homes you can almost double your income , deducting the costs of the reform. This accelerates the return on investment. Diversify investment Buying a home is neither the only nor the best way to invest in real estate. Diversification is increasing and the options range from storage rooms and garages, to warehouses or commercial premises, whose profits are enormous. The future profitability of the property will depend largely on the area in which it is located and its connections and services. In this way it is necessary to analyze the yields of the investment contributed according to the different localities. Also the development of infrastructures such as roads, public transport, hospitals or schools, both present and future. Invest in real estate without buying any The previously described investment of buying homes directly has the drawback of not providing asset diversification, as well as requiring large amounts of capital. The SOCIMI or Public Limited Investment Companies in the Real Estate Market constitute the stock market alternative that allows anyone to afford to invest in real estate in all its variants. The SOCIMIs are dedicated to the rental of any type of real estate, as well as the purchase, sale and investment in real estate assets. They also enjoy excellent tax benefits. To date, there are countless companies of this type.

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