If the habit of saving and investing money in the financial market has never been the expert’s forte, the same cannot be said of the culture of investing in real estate. This has always been considered a safe option to protect the economy’s reciprocating money, rampant inflation and controversial economic plans.
It is no secret that the real estate sector was one of the most affected during the prolonged economic crisis that Brazil has experienced in recent years, but the bad times are behind us.
Thus, there is still a lot of space for real estate investments in Australia. In addition, you do not necessarily need to buy property to rent. The market offers several other possibilities for those who want to profit from the real estate market.
What Are The Options For Investing In Real Estate?
First, you can go for the classic:, buy a property and rent it for an income or with the aim of reselling it for a higher price. This option has advantages and disadvantages. The main advantage is that the property is yours and becomes part of your assets.
However, it is a high-value asset and not everyone has the resources to buy it in cash. If it is necessary to make a loan, this will increase the price. In addition, it is necessary to pay fees and taxes when purchasing, which does not happen with financial investments.
If the idea is to rent, it is worth remembering that it is not always easy to find a tenant and, especially, one that pays correctly. During vacancy periods, you are left without any income. Finally, real estate costs maintenance and taxes, which must be taken into account.
Let’s look at other options in the industry. Real estate funds (FIIs) are investment funds that invest in real estate.
There are two types:
- brick funds, which have real estate even in their wallet
- paper funds, which have real estate assets in their portfolio
These funds pay the investor a monthly income, which is tax free. Their shares are traded on the stock exchange and it is possible to buy them as if they were a stock. On the negative side, the value of the shares varies, so that there is a possibility of having a loss when selling them.
Choose The Type Of Property
Again, this is a decision that will require a little study. Commercial rooms may be cheaper than apartments, but they are also the ones that suffer most in an economic crisis.
Smaller apartments may be easier to sell and rent than large ones, but the luxury market has moments of great appreciation. All of this needs to be put on the scale and evaluated in context.
Analyze The Location
Location is very important in that market. Whoever is going to buy a property wants to be in a safe region with infrastructure: transportation, schools, hospitals, shopping malls, markets, pharmacies, parks, cleaning. All of these items contribute to the appreciation of the property and facilitate it at the time of sale.
Here, we are talking about the property itself. Find out what are the items that buyers value most. In residential condominiums, for example, barbecue and swimming pool are among the most sought after.
To find out more about property investments in Australia, visit Real Vantage at https://www.realvantage.co/insights/investing-in-australian-residential-real-estate/ today.