Investing in real estate

Believe it or not, but the best investment is in real estate that can bring in cash flow. Gold and silver is just a means to reach the goal. Long-term capital appreciation, stable returns and relatively low risk – no wonder many of the world’s richest choose to invest in that particular real estate. The purchase must be patient, and so it is – stable investments should be allowed to take time. The real estate market is under some times still and second year sticker prices upwards. Sometimes, the prices are obviously down as we saw in the early 90’s.

There are different types of properties with different characteristics in terms of risk and return, t.different kinds of playing fields, a hotel is not the same judgment a forest estate. Real estate investment, however, has a variety of benefits that many are drawn to them.

Investing in real estate is a relatively straightforward thing. Of course you must count on your investment-just like with everything else.

Benefits to buying and investing in real estate is, among other things:

Realtillgångar generally offers a better protection against inflation than monetary assets
The investment is simple to calculate, as many factors are known and predictable.
The investment is belåningsbar often up to 75 %
It is a long-term investment that can be scaled up

To invest directly in a property requires a lot of capital.Often means that you förstagångsinvesterare take a bank loan to finance the purchase. But the leverage with borrowed money allows you can get a very good return on your own tax year and tax advantages by means of depreciation that reduces the tax base each year (the tax you pay depends on the type of property you own, what it is worth, and what you get for return)

As with everything else, so there are also disadvantages:

Often it requires a pretty big down payment for buying a property
Each property is unique and the two properties can not be in the same situation
Difficult to diversify in real estate because of the large unit values
Fastighetscykler have rigid supply curve, which makes that there will be offsets between the high – and the recession
Real estate property requires a government – which, however, can be active to different degrees
The absence of a common trading venue
Relatively high transaction costs, long transaction times

Remember: do not put money in investments that you do not understand. A property is quite simple to calculate since there are too many parameters and there are a few key figures to keep track of. Basically, it is about to figure out income per square metre and year, figure out the operation per square metre and year, calculate the net operating income by taking the income, divide net operating income by the price of the property and compare it with your required return of between 2 % and 10 % depending on where in the country the property is located and count on betalnettot.

The total return for the Swedish real estate 2016 amounted to 13.9 per cent, according to IPDs real estate index. The numbers represents the strongest performance since 2007 and is the seventh year in a row with positive developments.

If you do not want to invest in a property yourself but are attracted by the benefits so, you can invest in real estate through real estate agencies, t.ex :
The clover
The tower

The biggest hurdle that both I and many others have experienced with real estate investments is that the threshold to get started is very high. It is required, the 25 % to get started.

Leave a Reply