Yield potential of stocks and bonds is already very low, so a large number of conservative investors prefer to invest in real estate.
Our company specializes in finding investment properties, both for sale and for subsequent lease.
When selling investment real estate is the income from them faster on long-term, however, it is considerably higher.
After the agreement we subsequently take care of the property and we take care of the sale, or overall management associated with the lease.
Taking upon himself and risks associated with the lease of the property, and guarantee you a regular monthly income without downtime.
If you do not have a real estate investment capital, do not worry, you can arrange mortgage financing and its repayment of renting an apartment.
Proceeds from the apartment can be over five percent per year, which amply covers the costs associated with a mortgage.
But income is only one aspect of the investment. And for all investment is adjusted so that pluses at one parameters are balanced minuses other. It's always something for something. So what it will become an investment apartment?
In short, investment real estate is typically a long-term horizon, the long break, the medium-term liquidity, but low risk.
We begin the risks that should be considered when investing in real estate. There are essentially four: liquidity risk, market risk because of the risk of inflation risk Interest
Liquidity is the "ability" to turn investments quickly and without major losses in money. If we are talking about liquidity risk, we mean the danger that your investment in case of need will not succeed to convert the money fast enough.
The property is definitely not sell as quickly as shares on the stock exchange or share in the Fund, but if you properly select a good investment apartment (especially considering the location, accessibility, quality of construction and available), you should, if necessary, without any problems sell three months. It can be considered a medium-term liquidity, compared with, for example, shares in private companies, antiques or works of art.
The so-called market risk related to the concept of volatility. Volatility is a measure of fluctuations in value or earnings. Even here you can sleep peacefully. Comparing the real estate market with stocks or commodities, volatility is very favorable - the real estate market fluctuates only in units percent, up in the major crises are tens of percent.
In good locations you do not have to worry that the value of the investment has fallen flat in any significant and long term.
As regards inflation, the investment property compared with other conservative methods of appreciating money advantage. Savings accounts waged with inflation cliffhanger, bottom line at the end, you have a different amount of money than at the beginning, but it will be worth plus minus same as at the beginning of savings. The current accounts would be a shame to not worth mentioning.
Investment apartment on the contrary, acts as a protection against inflation, defaults rise in property prices move at least at the level of inflation, in good locations overcomes it.
Rents real estate, of course, also be considering inflation reasonably and flexibly increased.
Interest rate risk refers primarily to the strategy several times with the yield mortgage when you use low interest rates to have borrowed money from banks to invest in real estate, and thus achieve a higher return relative to their own resources. You can increase the yield interesting, but you run the risk that if in the future after fixation (significantly) increase the interest rate on your mortgage, you may not yield a nice mix.
Return on investment property to rent is inevitably quite long - ranging typically in the range of fifteen to twenty years. When you use a mortgage loan as leverage, the higher return you get for the price even longer payback. However, taking into account that the yield will realize a stable rent every month (not only in the sale of real estate), that extra real estate to protect your money against inflation and the risk of decline in prices is low, then a conservative investor is definitely worthwhile.