Which Type of Real Estate is the Best Investment?

Which Type of Real Estate is the Best Investment?

Although the effects of Covid have decreased, it is still felt, and many parts of the world have become accustomed to living with the virus. Like many sectors, the real estate market was also affected by this crisis and ups and downs. However, today, the expectation of profitability and trust has approached the levels before Covid. In addition, the location of the property is the most important, regardless of which real estate investment is made.

The most important factor for those who are considering buying a property to invest in real estate is the return on investment. Calculating the monthly rental income correctly to profit from the purchased property makes the investment worthwhile. The return of the money you give for the investment, that is, the amortization period, is important. Therefore, you should choose properties with high rental income. So be sure to consider the rent multiplier. For this, you need to divide the annual rental income of the property by the selling price.

Housing Investment is at the top of the list of real estate investments, as it also provides the Advantage of Rental Income. However, due to this situation, the renovations to be made in the house or the damage to the house by the tenant may reduce the income. When a property purchased for investment needs to be disposed of immediately, it can be converted into cash immediately. In other words, it is an investment that can provide returns in the short term. However, it can be harmful in the short run. In addition, if a bank loan is to be used while investing, it is recommended to borrow in Turkish lira and use loans with the lowest interest rates.

While buying land or land provides very good returns in the long run, it is not recommended for those who want to make a profit in the short term. In addition, lands and lands that are in danger of expropriation, located in protected areas or have water basins without the necessary researches may cause loss in investment.

In addition, before the land is purchased, whether it has a zoning permit or not should be investigated and confirmed. Soil survey should be done by engineers and it should be evaluated how much of the land is zonable. In the long term, situations such as transportation projects such as land or roads passing through the land, bridges are very important for the profitability of the investment.

If you want to invest but do not know where to start, we are ready to serve as SakoLife. Contact us!

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