Post by asadul7171 on Feb 14, 2024 1:29:15 GMT -5
Across the world, preserving capital and making it come to fruition is an obsession of the average middle- and upper-class and every investor. Investing in bricks can be a way of saving, avoiding capital depreciation and, of course, profitability. In fact, it’s one of the first options that comes to mind. The most common examples from landlord client inquiries usually occur when inheriting a property or owning an average amount from one moment to the next. What else can this money do besides investing in bricks? Buying to rent and living off the monthly rent has always been one of the top considerations. Have written two articles on how to manage a rental property. But...do you know exactly how to guide the clients who walk through the door of your real estate services office to that goal from the ground up? What advice should and should not be given when looking for the ideal property for this purpose? Do you think property can always be more or less profitable? Let’s look at a range of variables that may debunk some myths in this area. Are there risks in buying and renting a house? This is a question on the minds of a large number of real estate clients. On the other hand, this is one of the many misconceptions about buying and renting that is most commonly heard among agencies. Most real estate agencies direct clients for their own convenience rather than doing their job seriously or carefully. In this sense, it is best to know in advance that many properties for sale represent poorly invested funds.
This is one of the main reasons why we recommend doing a deep dive into a client’s goals before offering services that don’t align with them. Do you have a home in your for-sale portfolio that would be a real fit for this future investor client? This may be a common image, but that doesn't make it any less true: the commission a client saves is negligible compared to Italy Email List the risk you take on an ill-targeted purchase. Especially if the property will be rented. In this case, however, the risk (however small) is doubled because these are two different negotiations. First: find the ideal unit; second: find a tenant. A brief example of advice to future landlords. If you find a future landlord client an apartment in front of a popular shopping mall at a good price, its rental and sales value will be significantly higher than when the shopping center is about to close. different. If we look back at the business impact of the COVID 19 pandemic, we see hundreds of similar cases in Spain and across Europe. Many properties have depreciated in value and their leasehold contract value will also decrease along with their actual sales price.
The ‘Luxury’ Market Believing that a property deemed ‘luxury’ as an investment due to its location, features and other attractions is absolutely correct is a recurring misconception among clients planning to buy to let. Although this happens to a small percentage of people (due to the high capital required for their diligence), purchasing a luxury property and assuming it will always be in demand for rentals negates the risk involved in such an investment. If a crisis occurs (and this is verifiable, since we have just emerged from the impact of the coronavirus and are experiencing uncertain situations such as the geopolitical crisis in Eastern Europe), "luxury" properties located in tourist areas will be the first to reactivate their needs and reassess their own value. This is because they are most needed by foreigners or the upper class with permanently stable economic responsiveness. However, the risk in such markets is that new historical prices will be quickly formed after the crisis.