Many people are convinced that buying a property and then renting it is the best way to get extra money in the short term and secure the future, but that idea may be a bit wrong.
When someone seeks to acquire property, either in cash or by a mortgage, they have to take into account several aspects.
Because bank yields have remained below inflation and financial instability in the stock market, There are investors concerned about maintaining the productive power of their estate have considered the real property orientation.
Like any investment, it has its insecurities and possibilities of big profits. But what is important to be clear is that these are medium- and long-term horizons. In times of crisis people must dispose of their assets and, under that circumstance, prices tend to fall or at least the negotiating power will be much greater to make an advantageous transaction. On the contrary, in the bonanza, the market is of the sellers, and one must be especially careful with the acquisitions.
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The acquisition of an excellent property in an area that is in the process of flourishing could generate an essential return since this market is expected to recover quickly, as more mortgage financing is granted. Dedicating to investing in real estate tends to seek an interest in the land and tends to be an option that gives security because it is tangible.
Every market has its considerations
Every market has its insights about knowledge and information; it becomes privileged. Knowing beforehand, for example, whether there is future planning of avenues, schools or transportation routes, affects the appreciations of buyers and increases or decreases the price of the property.
To calculate your profitability remember that the cost of a business is high between the payment of taxes and the notary. There is no confirmed period; Investors reflect on the purchase of land and take it for decisions that have a high gain the lapse of up to 15 or 20 years obeying the circumstances and movements of urban settlements.
Apparently also consider possible losses of value of property derived from fortuitous cases such as floods or even the wave of violence in parts that reduce the surplus value. That is, the risk exists, as in any other investment.
In this market, you will inevitably encounter real estate agents as operations intermediaries. Usually, people thinks that it is always better to deal with the owner, but sometimes they help the complicated process of agreeing on both sides.
The purchase of a property must be motivated thinking that it will have to rent it and wait several years for it to be appreciated.
To decide if it is worth investing in a property, specialists recommend that you first compare the investment in the property with investing in a long-term fund such as savings on an afore.