Invest in real estate
The investment - it is an investment assets (currency, securities, precious property, etc.) in the enterprise and property, which can bring profit and other benefits. Investments cannot be carried out at the primary (new facilities)and on the secondary market of real estate (transfer of ownership rights to existing facilities). International real estate is influenced by many factors. First of all it is significant geographic differences in some regions. Hence their individual economic, political and social characteristics. That, in turn, is a determining factor in the investment attractiveness of real estate of the different regions. Not having the experience and expertise of the investor may be lost in the enormous amount of information about the investment climate of the region or another. In addition, the inflow Invest in real estate difficult because of the high cost of objects. There are four ways of extraction of profit by investing in real estate:
•first of all, on delivery of real estate investor receives certain funds;
•secondly, because of the constant increase in the market prices of real estate, there is an increase of passive capital of the investor;
•third, the estate can benefit by it exploitation;
•fourthly, if the successful resale of the real estate object, the investor can earn a considerable income.
Invest in real estate, as such, can be divided into three groups, each of which will have its own characteristics in terms of investments. It's housing, land and income producing properties. Housing is the most «versatile» in terms of benefit. In addition to using it for its intended purpose can put it in rent, which seems to be promising in the light of the current situation. In addition, the consistently high demand for housing provides a constant rise in prices for objects of this group.
Investments in land plots is more risky. The market value of land is dependent on many factors, among which the environmental, economic, political (decision of the local authorities), legal (change in land legislation on the state level). Investments in real estate, income-generating, are the most profitable, but at the same time, the most risky. Real estate is one of the most slowly profitable spheres (has low liquidity). This, along with the high cost of objects, is the limiting factors for a more active development of the market Invest in real estate.
The most well-known for the layman method Invest in real estate is a direct method, which involves the acquisition of object of the real estate on the market with the signing of a private contract, or purchase leasebacks. The indirect method is to purchase securities of companies, specializing in real estate or in investment and mortgage loans, which are secured by real estate.
Invest in real estate in some respects very similar to the investment in the shares. In particular, the one and the other long - term investments, and hence also the others of their common features.
There are many investment instruments. Of them to Invest in real estate are typically used Own free equity, debt, mortgages, options, bonds, mixed debt obligations, the preferential agreements on lease of the land and, to a lesser extent, some of the others.
And shares, and property rented out to provide the owner of the periodic income. But if the dividends on the shares is usually paid once a year, or once a quarter, the rent is usually paid monthly.
But the profit from the property less dynamic than the income of corporations with a high share of borrowed capital. This is for the following reasons:
1.income derived corporations in many respects depends on sales volumes of their products, which, in turn, is directly dependent on many factors market, while the contract of rent of the real estate provides the investor more stable profit.
2.Êîðïîðàöèÿ is always in development, in search of a new ways of extraction of profit, and the means and sources of income are constantly changing. And the objects of real estate with the passage of time will not change.
From the above it is seen that the income from the property are more stable than income from corporate securities.
The level of profitability of investments in real estate are also a few more high compared with a yield of securities. This is due to the fact that the investor's Income must exceed the costs of operation of the object.
Now there is a decrease in the liquidity of investment in real estate. In General, these fluctuations linked to the situation on the market of crediting of the real estate. When financial institutions reduce the volume of lending occurs decline of liquidity.
Investors when choosing an investment guided by the desire to get the highest income with minimum risk. When it analyzes the sum of necessary investments, volume of the projected income, as well as possible risks.
Invest in real estate - is a long-term project. Low liquidity, the long-time registration of the transaction, the greater the cost of changing the options prevent a quick profit from the investment.
However, real estate remains one of the most attractive objects for investment. This is due to the rapid depreciation of the cash, the instability of financial institutions, non-banking rates of inflation and other factors. In these circumstances, investments in real estate can not only save their capital, but also to obtain some benefit.
The most attractive in terms of investments are living objects. High and constant demand, availability Invest in real estate, as well as a clear definition of legal rights to housing provide sufficient liquidity of this type of investment.
For investments in property also has a significant influence inflation. This influence in two ways. On the one hand, real estate is a good destination for investment, which allows you to not only save money but also receive the income in any situation. And on the other hand, the growing rate of inflation stimulate investments in other spheres. This is explained by the fall in real wages, the lack of funds and the difficulty of getting an acceptable credit, the impossibility of accurately determining the projected profitability of investments.
Now, in conditions of high inflation, investment activity is not very active. The high cost of investments and high risks led to a decrease in the investment activity in this sector.
And despite all this, the real estate market remains attractive for investments. First, it allows you to save the savings, which, moreover, is directly controlled by the investor. Secondly, investment in real estate is one of the few, which are based on the right of ownership. Thirdly, investments in real estate allows with a high degree of reliability protect funds from inflation. Fourth, in the vast market of the real estate is still little developed in Russia. Fifth, high risks in this case are balanced by the high profitability of the transactions.
