· The crises in today’s economy compel people to think about the best way to invest their personal funds. To invest means to commit funds (currency, shares, or property) to enterprises or property with the expectation of achieving a profit. You can invest in both primary (new property) and secondary real estate market (transfer of ownership of existing property). There are four ways to benefit from investing in real estate: first of all, investors receive certain amount of funds from renting out their property; secondly, due to continuous growth of market prices on real estate, there is a growth of passive capital of investors; thirdly, real estate generates profit while it is occupied; and fourthly, investors can make a substantial profit if they resell their real estate property at a great price.
· Investing in real estate: what’s the right property to invest in? - This is one of the most frequent questions asked by people that have funds available for spending.
· Real estate can be divided into three large groups, and each one has peculiar features in terms of investing. These groups are: housing, developing real estate and real estate that generates profit (commercial real estate).
1. Housing. Investing money into a purchase of an apartment and renting it out later is the most common type of investment with insignificant risks, and even a person who doesn’t own a business would be able to catch on. All you have to do is to buy an apartment and rent it out. But, of course, it comes with certain nuances. What apartment to buy: secondary housing, improved layout or luxury? What area: in the center or on the outskirts? What type of repairs has to be done and what furniture to choose? These questions must be answered prior to purchasing an apartment. It is almost impossible to make a mistake and lose money with this type of investment. Another subtype of investment: purchasing an apartment with a bank loan. This investment requires a smaller amount of money for a down payment, and, with the right approach, it will result in a greater return on your investment. But this type of investment is more demanding: the investor has to be very knowledgeable. Choice of the apartment, bank loans, reserve and so on requires accuracy and experience. In addition to that, this type of investment is riskier and not recommended for those individuals who don’t like to take out loans.
2. Developing real estate. Investing in developing real estate includes investing money in purchasing developing real estate at the beginning stage of its construction and selling it in a few years at the final stage of its construction. It is the easiest type of investment into real estate: you sign documents, and a few years later you sign more documents, and the deal is done. Thus, you don’t need to look for tenants, do any repairs or collect money from rentals and so on. Apart from that, there are a lot of methods of increasing profitability from an investment: you can buy a property cheaper, from a contractor, for example, or you can receive discounts when you buy more properties and so on.
3. Buying commercial real estate. The biggest advantage here is that, as a rule, you can hire people that can partially or fully manage the property for you. In other words, you can employ specialists, such as an electrician, a plumber and so on, and if the work volume is much greater, you can entrust complete maintenance of the property to a managing company. Then you can forget (at least, in part) about looking for tenants, arranging daily and major repairs, collecting money from tenants and so on. It goes without saying that you must control activities of the managing company, but it’s still much easier than doing everything on your own. And one more advantage: investment return on the commercial real estate is higher than that on residential real estate.
We have listed the main types of investment into real estate but there are rare types of investment as well, for example: purchasing a land. Nowadays people are actively buying lands in the suburbs from former state farm workers. They are buying garages and summer residencies and so on. It is hard to list all types of investments in this small article. Choose the type of real estate that fits your budget and your personality.
Investment into real estate is a long-term project. Low liquidity, lengthy transaction processing and high costs of real estate conversion prevent from generating rapid profits from the investment. However, this type of investment remains one of the most attractive among other investments. It is directly linked to fast devaluation of money, unreliability of financial institutions, discrepancy between bank rates and the inflation rate and other factors. In these circumstances, investment into real estate not only protects your money but also helps to generate profit.
We offer the following Real Estate Investment services in Italy:
· Search for a property for potential investment in accordance with client’s requirements;
· Complete legal support during real estate investment transaction;
· Assistance in obtaining mortgage from the banks in Italy;
· Consultations on the issues of real estate taxation;
· Registration of acquired property with municipality, property insurance
· Trust real estate management in Italy, including payment of utility bills and so on;
· Staff recruitment for property maintenance and security management.
· Interpreting services during the transaction.
Our company offers a wide choice of commercial and residential real estate in any part of Italy.