We all know that the last few years have stood out very difficult for the global economy. But even in difficult times, I want to find something stable, where you can invest without fear. In this article we will look at all the features and secrets about investing in real estate in 2016.
Real estate can rightly be considered not only shelter from the wind and cold, but also a kind of safe haven investment. Completely losing investment in real estate can not be even a meteorite falls on the house (in this case will help the state). But a little money – you can easily! Sooner or later, real estate always increases in price.
It is interesting that the legal market of real estate have appeared only 40 years ago. In the United State, of course, it was the planned economy. All commercial property and infrastructure has been run by the public. Housing, with few exceptions, provided to all by the order “from above”. Buy could only country house.
The law “On Cooperation” opened a window to the first transactions on purchase and sale of real estate. A few years later, with the collapse of the Union, the Russian real estate market has evolved rapidly. In July 1991 a law was passed “On privatization of housing stock in the United State of America.” Since then, the number of real estate transactions each year is growing.
Investing in real estate in 2016: features
sanctions war, launched last year, has borne fruit. The ruble continues to be at the bottom, the stagnation in the economy progresses. In light of the weak national currency, real estate prices also went down.
The decline affected virtually all regions. Moreover, in some subjects, the price falls to 2-3% within a few blocks in a row. Among the leaders of falling, for example, New York, Philadelphia, Holywood region. In Las Vegas, prices for secondary housing Economy Class fell to the level of 2012. Rent the cheapest apartments in Moscow fell to 19 thousand USD. per month.
Anyway, the acute phase of the crisis has passed. In that converge both domestic and Western analysts. So, in the next 2-3 quarters will increase. The volume of investments in real estate very quickly go up the hill. Strong demand will increase prices.
The experience of the 2008-2009 confirms that real estate prices quickly recovered, and then exceed the pre-crisis levels. Thus, it is now a good time to make money.
Classification of real estate
There are several ways to invest in real estate. But before you consider them, I remind you what it is at all.
- Commercial. It includes retail and office space, industrial premises and warehouses, hotels. Shops, a hairdresser or a shop – all commercial real estate.
- Infrastructure. This group includes a variety of technical areas. For example, a water tower or a transformer box. Most infrastructure is combined with commercial property.
- Residential. Actually, this is all the objects that are suitable for human habitation. In general – apartments in apartment buildings and private homes. The land on which are located the above structure, also belong to the objects of real estate. But that is not all. American legislation identifies another group of objects relating to the property.
- The air, naval vessels and space objects. I wonder whether you can take out a mortgage rocket? Residential real estate is of greatest interest to private investors. This is due to stable demand and goodliquidity.In addition, the residential real estate, as a rule, cheaper than commercial worthwhile.
Investments in real estate in 2015: all the secrets
in the broadest sense, opportunities to make money on real estate just two. The first option – it is buying resale, for second – for rental. But the thing in detail. We consider them further.
Letting residential real estate for rent
this case I myself have been doing for several years. Earn at lease payments – this is probably the easiest and most versatile option earnings in real estate. Bought object and deliver it until not decided to sell it. Especially when this is not much:
- Recommended to always lease. Thus, optimally, if the term of the contract is 11
- It is desirable to include a list of the most valuable assets (estimated cost) in the lease contract. Suddenly tenants slept 80 inch TV? If the property is in the contract, the tenants are responsible for it.
- Try to visit the tenants at least two or three times in a quarter. Of course, you need to trust people, but suddenly they’re drug stash organized?
- It is recommended to shift to the tenants payments for water and light. Let not turn off the tap even day and night, but also to pay for it themselves.
- It is recommended to select as tenants couples. They tend to be calmer and household.
Note that the average payback period of real estate at the expense of lease payments is now at 13.5 years. This figure is obtained by assuming that the lease payments are constant and increasing. Taxes and utilities at the same time are not taken into account.
Purchase for resale
is important to understand that investing in real estate – it seriously and for a long time. “Cut down” easy money for a couple of months, then will not leave. After all, in order to pay not 13% tax after the sale – it is necessary to own real estate at least three years. So is everything as it should be calculated.
In the first place, it is necessary to determine at what accommodation you would like to invest. Under construction in new buildings or in the secondary?
The house under construction – this is the most profitable option. And the more early stage of construction – the lower the price the developer requests. Buying a home under construction in apartment buildings is also called equity participation. I myself went through equity participation. Successfully.
In addition to the lower price at the purchase of the equity agreement, there are other advantages. During the construction phase, you can agree on a particular layout, choose the floor and the staircase. Incidentally, the number of floors – this is a very important factor. It directly affects the price.
Apartments on the first and last floor of an estimated cheaper. It is believed that the first floor more noise and dust. On the last to get long, and more likely to be robbed.
However, it is not so obvious. In some cases, an apartment on the first floor redeem for offices and shops. And then the price is certainly growing. Well, on the upper floors often make penthouses. Hardly penthouse will cost less than a conventional apartment, agree?
Cons of Buying a property under construction – is the terms and risks. The terms simple: you have to wait for the house to be built. Please note that construction is often delayed for 1-3 months. And by chance I understand the risk of bankruptcy builder and poor construction (design irreparable flaws).
Newhouse. What is generally considered the new building? For example, in the team mail.ru on the subject serious turneddebate.In my opinion, it can be considered a new building housing younger than 3 years.
Housing in new buildings, usually the most expensive. In fact, you overpay prefix “new”. In truth, the new homes there is not any advantages over the old. It all depends on the residents and the area. You probably noticed that many houses (both old and new) keep clean, people are cozy in yards and porches. On the other hand, it can be ruine new home in six months.
A couple cons of new buildings – a possible manifestations of the construction of marriage and the ubiquitous sound of electric drills. I write these lines, and he understand that buildings – is a mediocre choice for investment.
Resellers. This option is not suitable for those who love all things new. For everyone else, there are plenty of advantages:
- low prices. Resellers Statistics by 10-20% cheaper than similar in new buildings.
- There is a risk that the shrinkage will occur at home, or misalignment of the walls in the building. When buying, you can immediately make repairs, if necessary. Or you can use the apartment in the state in which it was purchased.
- The credit on the secondary housing mortgage is much easier to take than for new buildings, and the more equity.
Of the minuses – age problems. The older the dwelling, the higher costs required for overhaul. Pipes, wires, and other communications also have their service life.
Foreign property. Foreign real estate markets developed better than ours. Against the background of instability in Russia, overseas property looks particularly attractive. What? A good option to invest, and along with a trip abroad.
We should evaluate the potential of the country. A high rate of economic growth spur demand for housing, and hence the rise in prices. In other words, you need to invest in real estate is now the most rapidly developing country.
For example, the average price for a house in Dublin, Ireland last year alone jumped by 22%. All of it was the fact that Ireland’s GDP has increased by as much as 6% over the same period. Similar growth was observed in Berlin, Madrid and Hamburg. In Paris, by the way, too. But there is growing demand for housing for some other reason. Migrants.
At the end I will share four more useful observations about real estate investment. Firstly, I note that the operations motionless compulsorily registered in Rosreestra. Steal an apartment today, you can not even the organizers of the most brutal schemes – the so-called “black realtors.” Therefore, real estate – it’s one of the most secure assets against fraud.
Secondly, for any real estate operations, it is important to take into account seasonality. Demand for housing is always higher in the late summer-early autumn and in December. In the period from January to April there is a lull, and thus lower prices.
Third, do not be afraid to invest in real estate in a foreign city for themselves. Prices are rising in developing better cities and metropolitan areas. Be sure to consider this.
Fourth, always use statistics. Knowing the prices, you can use this information when bidding and not lose in the transaction. Current information you can always check with me or check, for example, domofonde.
I would be glad if you like the article and will be useful. As always, happy to answer your questions the topic in the on comments.
I wish you all a profitable investment!