I have already invested in real estate and I find that this is a very interesting area but requires good reasoning, many people want to invest in real estate because they think it’s easy, they will use the banks’ money, but in reality, they do not know how to make this investment profitable.
I’ll go over some points for you to clarify this point:
- What are the benefits of real estate?
- What are the disadvantages of real estate?
- How to succeed when you start investing in real estate?
- How to make an investment in real estate profitable?
The benefits of investing in real estate
Compared to other activities, real estate has an advantage over the leverage effect that is to say that to invest in real estate you can borrow money, which is good if you want to do great things there is also the positive cash flow, if we have the possibility of having interesting rents and if we are able to increase the rental yield we can produce more compared to what we will pay the bank.
To invest in real estate, there are different ways and different rules to develop it, if one is able to play well on the leverage effect and to release a positive cash-flow one will be able to be profitable quickly without having to wait 10 or 15 years.
The disadvantages of real estate
It is certain that one can meet problems with the real estate, firstly, one is not very diversifier that is to say that to invest in real estate depends on the place where you are, the moment where you buy it, you will be stuck in a specific city, in an economy and you will not be able to take advantage of what is happening in the other sectors, secondly, compared to other investments like the stock market in terms of passive income. real estate is less profitable, we encounter problems like finding a new tenant etc., on the other hand we can make it profitable by mastering the field well.
How to succeed when we begin to invest in real estate?
The problem of many people who invest in real estate is that they tend to play with their emotions and this is something that should not be done otherwise you will lose money for sure, this has already been my case, in my first real estate investment I did not earn much because I worked with my emotions, I always said “it’s the house of my dreams, it’s amazing … “, it’s when I’ve mastered it that I managed to make this activity an interesting investment and a great profitability, obviously it requires a lot of work and especially a knowledge of the rules to follow, me I have done it since Dubai and it is true that in Dubai there is more ease but no matter where you live you can achieve profitability through real estate investment.
To invest in real estate we must train to avoid mistakes and more importantly we must adopt a reasoning cash flow, that is to say, always ask “How much I have to pay and how much it reports? ”
It can be made profitable
Investing in real estate can very well be profitable, a good investment is firstly “buy a good deal” then there is work on which we must bring value and finally we must actually be able to rent it at a price higher than what will cost you your bank credit “because that’s where you will earn money.
From there, you can see that investing in real estate is really profitable, there is just work to do such as the visit, find the property, consult ads, know agencies, negotiate with his banker, his tenant, … you have to be able to master all these dimensions.
I have some students among my students who say, “I want to invest in real estate,” and they realized that real estate was not for them and other people who wanted to do the stock market and who realized that real estate was great, what I want to say is that to succeed in a field depends on the situation and the case of each person, that’s why in my situation I did not focus on one angle, I try to grow, broaden the perspectives and finally give a process that is ultimately tailor-made, something that sticks to your profile and your expectations.
You already have the basic principles and you understand once again that investing in real estate can be great, it can actually be an investment that will make you financially free, but do not do it anyhow and you have to respect certain rules.