WHAT TYPE OF REAL ESTATE INVESTMENT IS RIGHT FOR ME?
When we enter the world of real estate investments, there is a wide range of options with varying outcomes.
The first thing an investor should do is have a very clear expectation of this business: What do I expect? What do I seek to achieve with my investment?
Within the real estate sector of each city, there are different business options ranging from investment lands expecting significant long-term appreciation, to fully finished products for immediate enjoyment or to start receiving immediate returns on investment. This also includes large real estate formats like mega lots for developers, shopping centers, and hotels.
For those seeking capital gains and appreciation, there are two options. Firstly, speculative land investments are typically located in undeveloped areas on the outskirts where city growth is expanding. This type of real estate model, often offering very low prices, tends to generate the highest capital gains and appreciations. However, it's essential to consider that these are long-term investments, sometimes spanning several years. It's money that needs to be left untouched for an extended period, and it won't yield immediate returns on investment.
On the other hand, there is the real estate model of residential and commercial properties in "pre-sale." This model allows investors to achieve excellent capital gains and appreciation with the expectation of medium to short-term return on investment. It works well for individuals who purchase with their own resources and resell finished products, generating between 20-30% profit. It's also suitable for those who want to buy at low prices, even if they don't intend to sell, and simply rent, use, or both.
For individuals seeking immediate returns on investment, the ideal approach is to invest in finished products. The appreciation may be lower, but if the right product is chosen, it can still yield good capital gains. The advantage of this real estate model is that it can generate returns on investment from the moment of delivery. This is an excellent option for investors looking to grow their wealth through bank loans rather than using their own resources.
Once you have a clear understanding of the real estate model you're looking for, the next step is to choose the most suitable destination for you.