When a person wants to buy a property he has to be clear about what he is looking for. It is one thing to want an investment with a high income and another is to be thinking about obtaining an appreciation in a few years.
The first option is for those investors who are contemplating a short or medium term horizon and the second one for those who have a long term one. People who are looking for the highest income, should know that there are options other than buying a home.
The investment in offices, warehouses, premises are giving a greater profitability. Although in the real estate business nothing is guaranteed, the truth is that at this time the commercial real estate is producing a greater profitability.
However, in this investment precautions must be taken. In the country there is a boom in the construction of shopping centers, which has made the levels of unemployment of local high in some places.
The other problem of the premises is related to the risks inherent to the lease.
Large brands are already located in the shopping centers in which they are interested. So in many cases there is no other option than leasing to a small company, which at any time can leave or default on their payments. The opportunity is to find premises attractive enough for a bank or chain store, which are the most stable tenants.
Therefore, before investing, you have to analyze your economic capacity to get premises at a strategic point. Many profitable projects can be out of reach, costly.
It is likely that a local $ 150 million, do not have the location or meet the specifications to attract a large and recognized brand. The square meter can easily be above $ 10 million.
The office business also has to look carefully. The perception of many analysts, is that the construction companies were dedicated to making office buildings, which leaves an excess supply that has produced a fall in the values of the leases.
As with the locals, the largest companies are the most fulfilled and those that most frequently extend their contracts. The challenge again, is to offer premises that adapt to the particular requirements of solid companies, such as architectural specifications, spaces, location, among others. The multinationals that are coming to the country are a good target market for those who have offices or want to venture into the business. These are almost always installed on leases and can sign contracts even for 10 years.
This is still a good time to buy housing, interest rates are at historically low levels and also those who acquire one of less than $ 172.5 million will be able to access the rate subsidy.
If you are looking to rent your home, be clear that the stratum is a key factor. The lower the stratum, the higher the lease income and the higher the stratum, the greater the potential for valuation.
It is also important to be careful with the choice of the neighborhood, as some already show signs of saturation.
Investors should also know that housing leases are less stable than those of a commercial property. It is not the same to rent a place to a bank or a warehouse than to a natural person, who rotate more frequently.
The appraiser believes that there is still room for housing prices to continue to grow, which in recent years has gained close to 10% per year.
If looking for a high value is about, the best option is the purchase of lots. Experts agree that the scarcity of land has triggered prices.
Although it is a very good business, the problem is that the land is already very expensive, and there is nowhere to buy.
In the cities, what many investors are doing now is buying more than two mostly old houses, then selling the land to the construction companies or doing some project.
When buying in rural areas, it is key to be clear about what the Territorial Land Management Plan (POT) allows to do in your territory. You may believe that the land is used to make a condominium, but the regulation may prohibit it.
In addition to making a judicious study of the rules, it is key to review the access roads, safety of the area, soil quality and productivity and price. All this will make the sale easier or harder in a few years.
You cannot forget when buying a lot for ‘fattening’ that initially, the cash flow of the investment is negative. To the lot you have to add all maintenance costs and taxes.
What to do if the money is not enough?
An alternative for all small investors who want to invest in real estate assets, is to get into real estate investment funds, which are becoming fashionable. These funds atomize the risks, by diversifying their participation in different real estate assets. People get a return collectively and also avoid the problems that generate issues such as the administration and management of real estate.