Although a purchase of any real estate is already an investment, not all such purchases necessarily become a profitable investment with high return. This is because when you buy a property for your own use, you take into account first of all such factors as the convenience of its location, whether this property meets your lifestyle preferences and your specific selection criteria, simply whether you like it or not. As opposed to buying real estate as an investment, when the main criteria is the possibility to get the highest possible return, while also taking into account that this investment should be safe and low risk.
The process of selecting a property for investment is complicated, and you need to approach it wisely. My task is help my clients decide what type of investment to choose, where and for how long to invest, and assist them in getting through the entire process of purchasing the selected property smoothly and hassle free.
Types of Investment
There are different types of investments, so it is important to choose which one is right for you, based on your preferences and capabilities. For example, the most profitable type of investment is an active investment, when you use the purchased property for conducting a business, such as a hotel or resort. However, if you don't want to be involved in any business activities, you can simply rent out the property, preferably on a long-term basis. In this case such type of investment is called a passive investment. It usually does not produce the return as high as it is possible with an active type of investment, but it is hassle free and does not require too much effort from the owner. Therefore, selection of investment properties and their locations will depend on what type of investment you prefer.
Types of Ownership
When buying an investment property, there are several options in terms of ownership. For example, you can finance such purchase completely from your own funds and be the sole owner. Alternatively, you can join a partnership for participating in profitable projects. In particular, I work with projects that use the Shared Ownership Investment model for accumulating the required funds. By using this form of ownership, you can strategically spread your funds by making small size investments in several projects at once, thereby reducing the risks. This is exactly what I call smart investment.
Terms of Investment
As stated earlier, selection of properties and their locations will depend on what type of investment you choose, active or passive. In addition to that, you will also need to consider for how long you will have to invest your money.
For example, you should keep in mind that such type of an investment real estate as rental properties usually are more suitable for long-term investment. Because the appreciation in value over years will cover all the costs associated with buying and selling such property. While another type of investment properties that are used for business, can be bought for a shorter period of time, for instance, for 3-5 years. Particularly, this applies to investment projects that involve construction, redevelopment and improvement of the real estate based businesses such as small resorts and hotels, and re-selling them afterwards with a good profit.
I help my clients choose the right investment strategy, and based on that, select the suitable investment properties that would benefit them the most.