Real estate investments are considered one of the types of investment with lower risk and with a greater perspective for the future. This is because asset values tend to stay relatively stable over time, unlike other markets that can fluctuate more.
Renta Corporación is an organization specialized in the real estate sector and we can advise you on this type of operation. For more than 30 years, we have been analyzing the market to take advantage of the best opportunities and provide innovative solutions that help meet the needs of our customers.
Our main mission is to generate added value in all the operations we carry out. If you are thinking of acquiring a property to obtain profitability, our team of professionals will help you throughout the process.
Next, we will delve into how you can obtain the maximum economic return with your real estate investments. Do not miss it!
How to estimate the profitability of your real estate investments?
The profitability is a percentage that expresses the benefit that you can obtain with a real estate investment. To find out, it is necessary to calculate the annual yield of the house. It should be around 6% and if it is less than 3% it is not usually considered interesting.
But the most advisable thing is not to get carried away only by its performance, it is also necessary to consider other conditions. For example, if it is necessary to request a mortgage loan, or if you need renovations or improvements, it is best to carry out a prior study and assess the different options.
Tips for investing in real estate
Investing in the purchase of a property has always been linked to an emotional component in order to find a home that would meet the needs of the people who were going to live. We currently see that the trend is changing towards a more rational decision where other aspects that may influence the final purchase price and a future valuation for a possible sale are taken into account.
If you want to obtain the highest profitability from a home, you need to take these aspects into account. As we mentioned previously, it is important to carry out a detailed study of the house: the price, the general condition of the rooms, the location, the type of population, its proximity to services, shops, public transport stops and connections with the main roads and other populations.
You must assess the sale price of the asset but also its potential to study the characteristics and aspects that you can improve to increase its value.
The location of the home or building that you are going to acquire is another of the main points to take into account, especially if you intend to give it a residential use or rent it. One option could be to buy in a neighborhood that is gaining value and is expected to become a fashionable area.
In any case, we recommend that you seek professional advice. Both in the process of buying, rehabilitating and later renting or selling the property, it can help you make a truly beneficial decision for you.