How to make money on real estate? Business in real estate

For a long time now real estate is one of the most reliable ways to preserve finances. Such a guarantee can not be expected from money, not from gold, or from precious stones. Jewelry and precious metals are movable property and can be easily lost, and cash is prone to inflation and suffer as a result of monetary reforms. Housing always remains in price. And it can even serve as a tool for making profit. If you know how to make money on real estate, you can establish a very real and reliable business. Let's briefly review its main schemes.

How it works

So, we earn on the sale of real estate. And not only on it. Invest in residential facilities can be on a different scale and different methods. Namely, buying and reselling apartments, renting out premises or opening their own intermediary business in the form of a private real estate agency. You can buy or rent commercial premises. Other real estate (cottages) as an object of resale is quoted less in connection with the high cost of housing units, but it is also quite in demand.

Not every one of these methods is available to anyone who wants to. The purchase of housing units or the lease of a commercial fund requires an investment of very, very considerable initial means. Such investments can be afforded mainly by commercial organizations. Among their possibilities is obtaining a bank loan for their own project. But business in real estate, that is, earnings on transactions with its purchase and sale, is also available to an individual with the necessary initial capital.

What are the main risks?

The main risk of business in this area is the lack of quick payback and possible losses in connection with this. The most popular type of such investments is the purchase of housing (a separate apartment) for the purpose of further sale. In recent years, due to the crisis and the drop in prices in this area, the volume of investments in such deals has decreased significantly and is no more than 15%. This is explained by the lack of increased demand as opposed to the housing boom of the early 2000s.

Buying a home in conditions of increasing demand for it guarantees multiple earnings during its resale. This applies especially to those who managed to invest in this area of free finance in the last decade of the last century. After 10-15 years, the profit in such transactions was tenfold.

Today, this effect can not be expected, since the periods of particularly rapid growth in demand for housing (and, accordingly, prices) in the short term is not expected. Currently, the domestic market is rather in the phase of decline. Only objects of affordable housing grow substantially in price. In large cities, including the capital, expensive real estate is not in high demand.

About shared construction

The optimal option for investment - housing in new buildings. Other real estate ("secondary housing") will not give such an effect. The cheapest will be the purchase in the house at the stage of the pit. Buying an apartment in the initial phase of construction, you save about 30% of its value. In conditions of a stable market, this is exactly the figure of profit, the calculation for which investors can be considered quite real.

But we should not discount the huge mass of risks of the shared construction system. At its earliest stage, its magnitude is maximal. To reduce risks, only developers with sufficient experience and solid reputation should be selected. Indirect, but not absolute signs of this can serve as a number of previously commissioned facilities, conduct of activities in accordance with the provisions of the law of the Federal Law No. 214 "On equity participation," a system of credit relations with one of the state-owned banks that are known to select partners carefully and carefully.

Which apartment to buy?

How to earn on real estate, having the necessary amount for investment? Which apartment is better to buy? If you plan on further selling it, choose a monolithic house. This will increase the future market value of the object. The price depends, in addition, on the degree of improvement of the surrounding area, the quality of the infrastructure, the availability of a number of necessary social facilities in the form of a school, a kindergarten, a hospital and a chain of shops, a good transport interchange, and in Moscow - proximity to the metro and the overall rating of the area.

Leading his business in the capital is recommended to focus on plans for the construction and expansion of the metro network. In Moscow today, interest in real estate located outside the Moscow Ring Road has increased. The reasons - in the growth of prices for such apartments when piping into the former remote area of the metro line. The cost of housing increases in such cases by 15-30%.

What you should know about real estate in the suburbs

Prices for housing are growing not only in Moscow, but also in the region. The cheapest property in the suburbs - apartments in new buildings in Zelenograd. This is due to some distance to the city from the Moscow Ring Road. And the infrastructure of this region is no worse than Moscow. In addition, you should pay attention to the areas of Solntsevo, where this year it is planned to open a branch line, Yuzhnoe Butovo, Dmitrovsky, etc.

Another option for investing in real estate is renting. How to make money on real estate rental? Demountable housing is in demand almost always. After all, buying your own apartment is far from everyone can afford. Such a plan requires either a free real estate object (apartment) or some amount in the form of an initial capital.

Use this money can by renting a suitable housing for the purpose of subsequent delivery. If the money is enough to buy an apartment, which you can later take, consider that your business expects an inevitable success.

The result is not soon ...

But it should be borne in mind that a purposeful purchase of an apartment for future rent is not the fastest business. The payback is not so great. In Moscow, buying an average for the price of "odnushki" will justify itself in about fifteen years, for a two-room this period is sixteen - eighteen years, and the cost of a "three-ruble" is such that you can return only all of the funds invested in the purchase in a quarter of a century.

How to earn on real estate using a mortgage? And is it possible? Contrary to the prevalent scheme with the purchase of an apartment for a mortgage and subsequent rental, the payback of such a home can not withstand any criticism. This property requires a very long payment of loan amounts with interest. The procedure drags on for decades. The final cost of housing as a result is overestimated a couple of times. Renting such an apartment does not bring any tangible profit, the maximum covers the payment of a loan.

What kind of apartment is rented?

So, you decided to buy an apartment for rent. What is better to choose? The most popular are single rooms. They are chosen for rent most often. Requirements in this case are not too high. It can be both panel and not too prestigious. If you do not admit the idea of the future sale of such an apartment or use it for your own needs, budget housing in a panel five-story building is a good option in terms of saving initial investments. But, bearing in mind the possible prospect of sale, one should take care of its acceptable quality.

Most often, the ultimate prospect of such an apartment is to become the future home of the younger generation of the investor's family. In this sense, investing money in housing is an intelligent and promising step. By the time the child reaches the age of majority, the apartment will pay for itself and multiply in value. Renting a non-demanded housing for rent, you will return the initial investment and be able to make your son or daughter an adult a valuable gift for almost no cost.

If there is no money

Is it possible to do business in real estate without investing a penny of seed capital? You'll have to disappoint - this idea refers to the number of unfulfilled tales for fans of freebies. Even having decided on renting your own apartment, think about the need to bring it into a decent state. That is, the cost of a good cosmetic repair will be required.

Attachments will require both the search for suitable options, and payment of part or all of housing services for purchased facilities, and much more. Therefore, without initial means in this business there is nothing to do.

Moscow real estate - a gold mine?

The capital with its sky-high prices for housing is the most promising place in terms of such earnings for its indigenous people. The most common variant of real estate investment of an ordinary Muscovite is renting your own apartment in a good area for a very decent money with resettlement for living in a rented dwelling of any of the cities of the Moscow region, where the cost of rent is several times lower.

Some decide to sell expensive Moscow real estate and buy cheaper in the suburbs. The difference in the money is invested in the rental of additional premises for the purpose of commercial hiring. The metropolitan apartment, in addition, can be converted to a hostel and give up daily. As you know, prices for hiring a living space at retail are incomparable with long-term leases.

Other options

How to make money on real estate, when there is no extra living space at your disposal and is not foreseen? If at the same time you live in a "two-piece" or "three-ruble", and one room remains unoccupied, this free living space can be let out.

Part of the "apartment" businessmen purposely buy apartments, choosing the most "killed" - without any repair, often in a terrible state. As a rule - the former property of alcoholics and other lumpen. The market value of such housing is slightly lower than average, and, having forked out for a decent repair, with subsequent sale it is possible to return the invested funds with a significant "addition". After all, the internal state of the apartment is the first thing that a potential buyer will pay attention to. Many are purposefully looking for housing with repair, as there is no strength or the desire to tinker independently, and are ready to pay for it.

There is such a profession

How to make money from real estate from scratch? Which investment method is the least expensive? Perhaps, here it is possible to talk about private realtorship. The intermediary in the apartment transactions does not need the initial capital, because the principle of such earnings is the receipt of a commission from the client for the services rendered. But this business can not be related to easy and uncomplicated. Choosing realtor activity is to study a huge array of information, active movement throughout the city, communication with a huge number of potential customers, whose search for a single businessman is more difficult to conduct than a professional promoted agency with ample opportunities for self-promotion.

From the realtor are required, in addition to dexterity and breakthrough abilities, good communication skills and psychological flair. The first results can be expected not earlier than in a year. And therefore at first such activity makes sense to conduct only on the rights of additional earnings - as an initial step in the development of future business.