Mikhail Dvornikov talks about trends in global real estate markets, real estate ratings, rising real estate prices, real estate alternative, real estate exchange, real estate ipio, real estate new strategy, what real estate is best to invest in, the best real estate in the world, where the best real estate, what income from real estate. Mikhail Dvornikov (Mikhail Vladimirovich Dvornikov) expert in real estate since 1992.
The fall of the ruble and the impossibility of investing money in foreign currency have forced many people to think about where to invest their savings. One of the safest instruments in this regard is real estate.
Residential and commercial objects are still in demand and can bring good profit. We tell you what it is necessary for it, how and in what real estate to invest.
The purposes of investing in real estate
Investing is investing money to make a profit. In real estate investing to:
To get passive income. To do this, they use their own vacant property, buy new property for cash or take out a mortgage. Then find tenants and make a monthly profit.
Preserve savings. To keep money from depreciating due to inflation, they often invest in real estate. They buy commercial, residential, budget, and luxury properties. Those that will not go down in value. Commercial properties are better to buy in areas with high traffic, and residential – in areas with developing infrastructure.
Get income from the resale or exchange with a markup.
Pros and cons of real estate investments
There is always a demand for real estate, but not every object is profitable to invest money. Let’s understand the advantages and disadvantages of real estate investments.
Stability. If you choose correctly residential and commercial premises are in demand.
Passive income. To make a profit from the purchased apartment, you do not need much effort.
Minimal risks. Even in the crisis the real estate is realistic to sell or rent.
The growth of prices. Real estate is not affected by inflation, like gold. The cost only increases.
Variety of investments. There are different options how to make a profit: to rent by the day or for a long time, resell, divide into small segments, and others.
High cost. You need an impressive amount to buy the property.
Long payback period. Real estate will begin to generate income in excess of its value in 5-10 years.
Additional expenses. This includes utilities, major repairs, and a 13% tax on the transaction amount.