How to make money on real estate
The Russian housing market is still too young by world standards, and therefore many of our compatriots, having met in the media articles on how to make money on real estate, are sure that this offer is not for them, because it requires large investments. Meanwhile, many world-famous tycoons in this field, including the famous Donald Trump, took their first steps in this fertile market, not even having a cent, but good at counting.
Of course, the easiest way is to earn first money on real estate for those who already have it – for example, rent their own apartment or garage, and rent an apartment yourself is cheaper and park your car. But even for those who do not have their own apartment, you can make money on real estate by subleasing apartments. The essence of earnings is to rent an apartment for a long term and rent it daily. This profitable business even works in a small district town, where the cost of renting a 1-2-room apartment can be 4000 rubles. You can always rent such an apartment for 500 rubles per day to business travelers or city residents for confidential meetings, parties, etc., without forgetting to regularly update advertisements in the local newspaper of announcements and on the Internet on specialized sites.
Cloning a Successful Sphere
The profit from such simple earnings can be directed to its expansion, namely the creation of a network of several similar apartments. Having accumulated a certain amount, you can invest it in order to earn on it after a while. There are several types of real estate investments in Russia, among which you can always choose the best one for your region and wallet.
Types of Real Estate Investments
The first, very popular option on the eve of the crisis, is investing in the construction of an apartment in a house under construction at the zero-cycle stage and selling the object after putting the house into operation. Such a scheme made it possible to double and sometimes triple the initial investments, but during the crisis many new buildings were frozen and investors suffered losses, especially in those cases when borrowed funds were raised. But there are more reliable types of investments, albeit not so profitable.
A win-win option is to buy a property in very poor condition, repair it and then sell it at existing market prices. You can find a similar object by tracking ads in specialized publications. Moreover, the worse his condition, the easier it will be for you to convince the owners to significantly reduce the price, but the main condition is that housing should be located in the area in demand among residents of the city. In the repair, do not use too expensive finishing materials, as well as too bright colors: everything should be worthy, neatly not catchy. Depending on how efficiently you are able to bargain with apartment sellers and find inexpensive building materials for repair, you will be able to earn 30-50% of the amount of investment in real estate in this case. If while you do the repair, the prices on the market begin to rise, then the profit can reach 100%.
This type of long-term investment in real estate in Russia, such as the purchase of land for resale, is also gaining popularity. Unlike apartments and commercial real estate, which can be heavily built, and if prices do not decrease, then rise, there will be no more land than there is. Moreover, if prices are still quite high within a radius of 10-15 km from regional centers and large cities, then within a radius of 50-100 km even from Moscow or St. Petersburg you can still find sections at very low prices that will inevitably double and triple in over the next 3-5 years. It’s possible to pay attention to them as an investment object, of course, paying attention to the opportunity to conduct the necessary engineering communications to the site. Try to choose a site with a beautiful view, near a forest or a reservoir – they are bought first and foremost more expensive.
Finally, cautious investors who do not like to withdraw large amounts from their accounts can make good money on real estate by investing in closed real estate mutual investment funds (CIFs), the number of which has grown 16 times over the past 3 years from a financial instrument for VIP investors they have become a popular and affordable for many type of long-term investment. Mutual investment funds specializing in real estate earn on the purchase of land, reconstruction, construction and subsequent management of objects, and shareholders have the opportunity to control their activities and influence its directions. Investment income will have to be shared with the management company, but the risks in this case are minimized.
No one canceled the purchase of housing abroad – buying property in Turkey here, you can rent it out for a long term, thereby earning a substantial income.