Last Updated on August 16, 2022 by Kimberly Crawford
The instability of the current economic situation, currency fluctuations, and global migrations made many think about where to invest their savings to be both satisfying and lucrative. In this regard, real estate remains one of the safest instruments as residential and commercial housing is still in demand and can bring high profits. This article will review key ways you can invest in immovable property using Ofirio and what leading options you should consider.
What is your Purpose for Investing in Real Estate?
Investing in housing is a simple and reliable way to save money. However, treat this purchase responsibly to avoid unnecessary expenses and losses. For instance, the spontaneous purchase of an apartment without renting it out turns from a potentially profitable investment into a liability that requires money for maintenance.
So, before you use ofirio.com to find proper housing and make money in real estate, you should primarily define your investment goals and consider the further key steps of your investment journey.
Many investors buy properties to get a passive income or prevent money from depreciating due to inflation. Investors buy commercial, residential, low-cost, and elite premises that down depreciate because when the stocks are down, real estate is often up.
To make income on your purchase, analyze market prices, promising locations, and buyer needs because this knowledge will help you acquire undervalued and inexpensive properties and gain the highest profits.
What Kind of Property can you Invest in?
Whichever type you go for, the larger the city, the higher the demand for residential and commercial space. So, before investing, we recommend you consider the following investment options:
- Residential properties. Because of the low risks, novice investors prefer to work with this property type. If you fancy yourself as a residential property investor, you can get your income through resale or rental. When buying a dwelling, it’s worth taking time to consider all the critical characteristics such as location, traffic, year of construction, layout, infrastructure, etc.;
- Commercial objects. This option is suitable for investors with experience as such investments can add diversification to your portfolio. Besides, commercial property is more profitable to rent than to resell;
- Land. It’s no secret that the value of land is constantly rising. Of course, it is profitable to buy land plots, as the growing population means more demand for the same supply. Moreover, this type of property is cheaper and easier to arrange as there are no additional utility bills and repair costs. However, before making a purchase, clearly define the purpose of such investment. Note that the most beneficial are plots for construction and agricultural lands suitable for long-term investment;
- Countryside estate. Country houses with a modern take are trendy among residents of megapolises. As more and more people turn to more conscious living, the demand for comfortable places with a beautiful views and nature around will continue to increase;
- New buildings at the excavation stage of construction. Developers set minimum prices to stimulate demand and draw the attention of buyers to the object at the initial phase of construction. Although buyers of apartments will have to wait longer than others, the developer compensates for this inconvenience with a reduced price;
- Parking places. This is a nice type of investment in large cities, but the income depends on the site’s location. For instance, parking places located in busy commercial areas will naturally bring more profit than alternatives, and the value of such investment will rise yearly.
Historically, you needed enough money for a deposit to start your way up the property ladder, but today you can become a property investor with much less money because of the incredible variety of investment options. As with investing in general, you have to choose what kind of real property investment suits you best, whether it’s very hands-on, hands-off, or a mix of the two.
How to Invest in Real Estate with Ofirio?
Keep in mind that to start a proper investment journey and to make investments which generate high income, we recommend you to follow the following algorithm:
- Explore the situation on the market, especially what kind of real estate is in demand, what buyers are looking for, what are the average prices for properties, and where there are exciting locations or areas with developing infrastructure;
- Make sure the sellers, developers, tenants, and intermediaries are reliable. So, take your time to check documentation, reviews, rating, and reputation;
- Create a free account on the Ofirio website to access its full functionality;
- Use the Investment Finder tool to find the best options on the market by the pre-established metrics such as search by city, price, address, etc.;
- If you have doubts about how to pick a lovely property to buy, the Ofirio in-build AI algorithms analyze properties around the US and provide you with complete information about the housing, including the property taxes, insurance, HOA fees, vacancy, and other expenses;
- Contact the trusted Ofirio agent by filling in your personal information in the pop-up window, and wait until they get in touch to discuss the details.
There you go: we’ve laid the foundations to help you make your property investing easy and lucrative.
Pros and Cons of Investing in Real Estate
There is always a demand for real estate, but not every object is profitable to invest money in. Let’s look at the pros and cons of purchasing real estate, starting from apparent advantages.
Residential and commercial premises are always in high demand, and to make a profit from the purchased apartment, you do not need a lot of effort, just quick access to your money. Even during economic crises, when investors take a flight in times of market turbulence, housing can be sold or rented out at the price you’re asking for. Real estate investment is characterized as slow and stable, so it’s not highly affected by inflation, and the cost of a property tends only to increase.
However, there are some disadvantages essential to consider as well. The large deposit needed to buy housing can be off-putting, but we suggest exploring property lease options which require low upfront costs. And real estate investing is characterized by long payback, so it will start to generate income above the cost in 5-10 years.
Conclusion
It takes time to make money, but if you apply your ideas from this handy guide with your knowledge and persistence, real estate investing will work for you too.