Category Archives: Real estate

Learn how to invest in real estate

By Real estate, , ,

Real estate investments are safe and have the best chances of becoming profitable in the medium and long term. The situation has changed over the last years, the crisis has been overcome and the real estate market has balanced, and a real estate investment can be, very easily, driven to success. Any real estate investment process is required to undergo a valuation and analysis procedure to make the investment profitable.

Stages you have to go through to make the actual investment:

1. Analyze your financial situation. Set your budget clearly. In particular, evaluate your assets and incomes, analyze your expenses. Thus, you will be able to have a clear picture of the capital you would have available to invest in real estate. If you intend to make a loan for this initiative, your savings will be very important in paying advances and reducing the monthly financial rate.

2. Consult a bank. Depending on your budget, if you think you still need money to go into the investment, consult a bank and get a credit pre-contract. Thus, you will find the amount you will have to make a first investment in real estate. You will also know the monthly rate you will have to pay in the case of a credit.

3. Make an investment plan. For starters, try to determine what properties you would be willing to invest in. For example, if you live in an area with intense economic activity, a profitable investment would be in an office space. This type of property can bring you a substantial income and can support the rate if you have a bank loan.

4. Verify your competition. Analyze the offer on the local real estate market, especially if you are targeting an investment in your city or area where you live. Depending on the information obtained from the market analysis, you can determine that your investment in real estate will bring extra gain. The market for apartments, commercial spaces, land is a competitive one, so it is mandatory to differentiate your property through a value element to raise the interest of potential buyers or tenants.

Only invest in areas where that you know. Take these steps before you make a first investment in real estate, leave a comment and tell us your opinion.

How fast do you get your money back from renting an apartment in Europe – Top 5

By Real estate, , , , ,

Following the financial crisis and the decline in banks interests, more and more people have begun to buy real estates for investment purposes, relying on renting them and earning a higher return on the one obtained from a traditional bank deposit or other financial instruments. Read below what are the TOP 5 European cities where the purchase of an apartment for rent could bring the biggest gains.

The yield, or rental gain, is a measure of the attractiveness of a real estate investment. It shows what percentage of the amount used to buy the apartment you get each year from renting that property.
For example, if a person purchases an apartment with 200,000 euros and rents it with 833 euro / month (equivalent to 10,000 euro / year), that property generates a yield of 5% per year. As a result, that person will recover the money used to buy the apartment in 20 years (5 x 20 = 100%).

1. First place: Chisinau, Republic of Moldova

10% yield for a property (generally an apartment) with an average area of 120 sqm.
Time required to recover the purchase price: 10 years.

Pluses:
Some of the biggest real estate returns in Europe, but also in the world
The property market favorable to the owners

Minuses:
High taxes
Payments for property acquisition are made almost exclusively in cash
One of the poorest countries in Europe
Secessionist risks

2. Second place: Kiev, Ukraine

9.09% yield for a property with an average area of 120 sqm.
Time required to recover the purchase price: 11 years.

Pluses:
Low cost of transactions
Moderate tax on rental income
The property market favorable to the owners

Minuses:
Expensive properties reported on the country’s GDP
Corruption and risk of political instability
Vulnerability to international crises

3. 3rd place: Dublin, Ireland

7% yield for apartments.
Time required to recover the purchase price: 14 years and 3 months.

Pluses:
Moderate transaction costs
Strong market to rent for migrants
Strong and stable economy

Minuses:
Lower rents in recent years
Strong laws favorable to tenants

4. 4th place: Budapest, Hungary

6.42% yield for a property with an average area of 120 sqm.
Time required to recover the purchase price: 15 years and 7 months.

Pluses:
Proprietary laws
Higher yields in Budapest
Moderate and low transaction costs

Minuses:
Minor property restrictions
Moderate / high taxes on rental income

5. 5th Place: Bucharest, Romania

6.07% yield for a property with an average area of 120 sqm.
Time to recover the purchase price: 16 years and 6 months.

Pluses:
Moderate transaction costs
The property market favorable to the owners

Minuses:
Expensive properties reported on the country’s GDP

error

Enjoy this blog? Please spread the word :)