Investing in the real estate means more than buying a house!
In Italy around 73% of the population decides to invest in the real estate. A significant proportion of these people purchase a house to live in. There is then a minority who decides to invest and build a concrete real estate property.
In the collective imagination this form of investment means to buy houses and then sell or even rent them. In reality, a perfect real estate investment is much more complicated than this, even if it can become very profitable. Accuracy, however, is highly recommended.
Piling up houses is not enough
The acquisition of a real estate – should it be the case of a commercial premise or a house – implies some extra expenses which must be added to the initial outlay and considered for any possible restoration works. One must rate taxes, maintenance costs, interests if a loan has been required and unexpected expenses. A big business meant to be as such at the beginning can soon turn out to be only a waste of money.
Might this perhaps mean that it is not worth investing in the real estate? Certainly not: we would not do our job if we had similar thoughts in mind. It rather means that investing in the real estate goes beyond the simple “purchasing a house”.
Before buying or rather have an estate built for investments various factors must be considered. The first being the kind of investment needed: sale, short and long term rents, private rents, company rents… In view of this, the best location to buy or build must be considered as well as considerations can be made on the market trends and on the possible margin profit.
Should all these operations be properly performed profits would be possible and big. On the contrary, should one pile up estates to let or sell, a loss could be around the corner.
Which is the purpose of buying?
Small improvised investors tend to focus on medium-low level residential estates hoping to sell them at a higher price or gain from their rents. Only sometimes thing go this way but some other times they miss real occasions.
Here is an example.
In some cities a commercial premise is a safer investment and in a sense even less problematic than a residential estate. The list includes offices, stores, big stores and coworking. With the outburst of smart working these last seem to be likely to know a new start.
Unfortunately, different small investors do not even thing about all this just because they are stuck only on one form of rest estate investment: buying a house and then resale it. Should they ask a skilled consultant’s advice they would not have to deal with this issue.
Why you need a professional’s advice
Only a small percentage of those who invest in the real estate asks for a professional’s advice. Sometimes the worst choice remains unperformed action like this: almost none of the private citizens possesses the instruments to assess the market variables. This is the reason why the real estate advisor’s view is always recommended.
Your investments will become profitable thanks to the aid of these professionals. They can assess trends and advice on how to really invest in the real estate, thus seizing the real opportunities and turning your estates into a proper financial source of gain.
Should you need any other information please do not hesitate to contact us: the Quid’s team is at your disposal for any clarification you might need.
