The
3 ways to invest in real estate
Given the global economic
uncertainty, investment in real estate has always proven to be an active
refuge, so experts consulted by the Properties.com portal make some
recommendations for investing in the sector.
To invest in real estate,
each person's risk profile plays a very important role. For example, if these
assets are seen as risk coverage because low returns are observed in the rest
of the portfolio assets then we expect a greater flow of investments towards
real estate, said Leonardo González, an analyst at Real Estate de
Propiedades.com.
Here
are three ways to invest in real estate.
Income
The rent of a real estate
allows to obtain benefits in a smaller term than a sale. However, you should
keep in mind that you have to make an initial investment to maintain the
property and have more value at the time of rent.
The location of the property
is very important to determine the rental price. A property well connected and
close to public transport can get more benefits and will be easier to rent than
one that does not.
An increasingly popular
option is to use the property through collaborative systems such as Airbnb.
Rocío Uribe, general director of Quality Inmobiliaria
Uribe, said that it is a good system and it is viable if you want to rent a
room of the property, since renting it completely includes some maintenance
costs that people do not contemplate.
"Sometimes you end up
spending more than you receive because you have to have a person who is giving
service to that property, have it clean day by day, have the adjustments,"
said the expert.
Remodeling
Another option is to buy a
property used to remodel it and sell it later.
The remodeling projects
allow increasing the value of homes, so that the final closing price is higher
than if only the property is sold in its current state, explained Leonardo
González.
In addition, he added that,
although the gain can be very variable, as there are
some almost complete remodeling, or in very dynamic areas, the value of a
property could increase between 5 and 7 percent.
Sale
If you want immediate
liquidity, selling a property is not an option, since a sale could take between
six months and a year.
The investment in real
estate purchase is rather medium to long term, especially if you consider that
you must wait for the property to generate surplus value.
To obtain the greatest
benefits you should consider that the closing price is adjusted after the
negotiation, said Leonardo González.
Other important factors are
the term or time of stay on offer, the method of payment or amortization of
value of the property, the guarantees of tenure rights, the expected surplus
value, the tolerance to the risk of claims or contingencies and the
metropolitan environment of the property, The analyst
concluded.