Is it profitable to buy a home to rent?

January 23, 2020

It is well known that real estate can also be invested in to make a profit. In this case, we are talking about the business of buying rented or rented homes. Investors are a favorite. Next we will see why.

  • Renting is faster than selling. A rental involves a lower investment at once. Therefore, it is not a decision that involves all the time and financial resources as in the purchase.
  • Provides monthly liquidity. If the house is profitable, you will have the guarantee that every month you will earn a living.
  • Society is no longer linked. At present, the mindset of people is different than before. They want to feel free to change their country, city or apartment, which means not getting into a mortgage.

However, several factors must be considered when making this investment. Here are three of them:

  • It is often thought that buying a home at a low price results in higher returns. Sometimes so-called “bargains” are sometimes not entirely certain that a very high profit can be made. The price of the house is not a determining factor if afterwards it is not invested in improvements, because for something it is so affordable.
  • It is advisable to house between 150 and 250 square meters. The smaller ones are less in demand and the larger ones are less profitable.
  • Be aware of the area and the people you are addressing. Every audience has their needs. A family that needs more rooms and a school nearby is not the same as a young couple prioritizing their social lives.

Not in all situations buying a flat to rent is profitable. It studies, analyzes and observes all the factors around the house. The important thing is to find a home that meets the needs of tenants and thus make a good investment.

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