Real estate objects are in demand and can make a good profit. For example, Zaki Ameer went from ruin to owning 15 properties in just three years. This person founded his own company Dream Design Property, helping ordinary people achieve the same.
Investment Goal
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The main purpose of investing is to make a profit, which means to:
- Get passive income. They use their own free real estate, buy a new one. Then they find tenants and make a monthly profit.
- Keep savings. To prevent from depreciation of money due to inflation, it is often invested in real estate.
- Get a speculative income. There are two ways: buy cheap and sell high; buy real estate and exchange it for something else at a premium.
Positives and Negatives
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Real estate is always in demand, but not every object is profitable to invest money.
Positives:
- Stability. Residential and commercial premises are in demand.
- Passive income. It does not take much effort to make a profit from a purchased apartment.
- Minimal risks. Even in times of crisis, real estate can be sold or leased out.
- Price increase. Real estate is not affected by inflation. The cost only increases.
- Multiple investment options: renting, reselling, dividing into small segments, etc.
Negatives:
- High cost. You need an impressive amount of money to buy real estate.
- Long payback. Real estate will begin to generate income in excess of value in 5-10 years.
- Additional costs: utilities, major repairs, taxes.
- Low liquidity. It is difficult to quickly sell housing or office space at a market price, it takes much time.
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