Welcome to Money Beng, even today we are talking about one of the hottest topics for making money, namely real estate investment. Let’s see in more detail what it is and how it is possible to generate a profit or an income thanks to this sector which is still very profitable today.
What is a real estate investment
By real estate investment we mean investing money in the real estate sector, which therefore translates into the purchase and sale of houses, land, estates and so on, in order to generate a profit.
Why invest in real estate
As all economists know well, real estate falls into the category of safe-haven assets, that is, the type of assets that investors but also ordinary people are more willing to buy to secure their money in the event of international crises or economic hardships.
This happens because once any crisis has been overcome, the properties will certainly be advantageous to be able to be put back up for sale and make up for the capital invested.
What we want to say is that the first advantage for which it is advisable to invest in the real estate sector is to transform your money into something that will hardly lose value over time, indeed in this particular period it can only increase.
We have therefore slightly mentioned another reason for investing in the real estate sector, this is a particularly favorable period to buy a house to make an income.
The scarcity of rents in circulation has meant that demand continues to grow, therefore buying houses or buildings to rent is particularly advantageous as such a low offer allows you to increase the price and consequently your income.
Milan real estate investment
Taking for example a city like Milan, here the situation is definitely favorable for renting apartments for income, as being a university city there are many young people looking for apartments to rent to continue their studies and coming from all over Italy.
In this city it is even possible to rent per room from 300 to even 500 euros per month to a student who studies. You understand that having a building in a city like this guarantees you a very high income every month!
Clearly the cost of the properties for sale is significantly higher than in the rest of Italy, but the game could be worth the candle if we manage to find some bargains.
You may also be interested in: How to live on an Income
Investing in real estate with judicial auctions
Perhaps not everyone knows that it is possible to buy apartments or even entire buildings at practically bargain prices, even 10 times less than the real economic value.
All this is possible thanks to the judicial auctions that offer new properties for sale every day. In this regard, we invite you to take a look at the judicial auctions in Milan and its surroundings.
But why are these houses put up for auction at such low prices?
The reason is simple, these properties belonged to people who have not been able to pay their debts to creditors, with the consequence that the latter to use their capital legally act on the debtor’s capital which is thus foreclosed and auctioned. judicial.
The creditors have no interest in selling these properties at their market price as they are only interested in recovering the capital not yet paid, with the consequence that these foreclosed properties are put up for auction at much lower prices.
On the other hand, there is the ethical question, and there are many investors reluctant to buy expropriated homes and properties.
But while on the one hand there are people who reject this type of investment because of their ethics, on the other hand there are investors who take advantage of the lack of competition and favorable prices.
Invest by selling real estate
Real estate investment is not only configured in the rent of valuable properties but also in their sale which can often yield several thousand euros.
There are many rustic buildings, or land located in the area in central positions of the city and waiting for investors with a great flair for business.
There are rustic buildings whose owners no longer have the liquidity to refurbish and refine them, or perhaps they have simply fallen into oblivion.
This type of buildings could represent an excellent investment, this is because they have a much lower price than that of already finished buildings, on the other hand they also have the advantage of having already carried out the technical appraisals and have fulfilled the bureaucratic obligations.
On the other hand, it is still necessary to refine them, but if you are good businessmen, the game can once again be worth the candle as they say in Italy.
Not to mention those parked land in the very central area of the city and well served left to itself, or even those land or apartments for sale in areas that could be redeveloped by the municipality in the medium to long term.
In short, all variables to be taken into consideration when choosing to get involved in the real estate market.
You may also be interested in: How to Invest Today
Open a real estate agency to invest
Another real estate investment of great interest could be to start a real estate agency.
This kind of agencies are nothing more than intermediaries, they take charge of the owners’ apartments by promising them to sell or rent them as soon as possible in exchange for a commission.
The convenience lies in the fact that you do not own these properties, therefore you will have all the properties that you can add to your portfolio to show to your potential buyers.
In exchange, as mentioned, you will have a commission that you can establish yourself when signing the exclusivity contract, with which you commit the owners to put their property for sale or rent at your agency, for a percentage of the sale that can also arrive. up to 10%.
The real estate business is as old as wine, but it remains today one of the best investments to make in 2022, not only to secure your money from international crises and inflation, but also to have a constant return over time that allows you to sleep. quiet dreams.
Thank you for being with us, this article on real estate investment ends here, if you found it interesting, share it with your friends via the social buttons below, see you soon and good continuation on Money Beng.
Money Beng, The Editors
© REPRODUCTION RESERVED