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Opportunities And Risk Of Real Estate Investment

real estate investment

As with other businesses, investment in the real estate industry also faces a number of problems. Largest still has to go through the opportunities and the potential risks for real estate investment.

More than anyone investors need to be alert to analyze and choose for themselves the types of investment real estate to ensure that the profit is the most appropriate.

  1. Invest in ground land

The ground land market is a long-term investment. Land investment opportunities remain and are quite attractive due to the demand of the market is still large as well as the profit value of a land investment is quite high. In addition, we can see attractive advantages for land investment such as:

  • The profit margin is quite high depending on the actual situation of the land area. But profit from a land investment is not less than 15%.
  • The large land projects have the appearance of sponsorship of many banks as well as financial institutions have created favorable conditions for investors boldly “hands down”.
  • Being valuable assets to buy and resell has been formed, there is no change in the future.
  • Psychology and thought clinging to land, with land attached to the house still exist in the majority of people, so investment opportunities are quite large.
real estate investment
The ground land market is a long-term investment.

However, there are potential risks when investing in land. Investors should also consider making the right decision.

  • High investment due to high land value. Investors with the mentality hesitate to spend large amounts of money at once to own the right land plots.
  • The speed of payment and land allocation took place quickly but profitable, but is a weakness that many investors consider.
  • The land fund is becoming increasingly limited, unable to generate more. Some key areas are almost impossible to obtain. The majority of the existing land is the project land in the new land.
  • Profits are now inclined toward long-term when investors are willing to “wait” for perfect infrastructure, planning or depending on the cyclical nature of the property.
  1. Investment in townhouses

This is a type of investment real estate podnik investors. New modern townhouses are quite expensive depending on the route, location and ownership. In addition, some investors choose the form of buying street level 4 upgraded and then resell to profit.

Opportunity to invest in townhouses still open to investors:

  • Demand for frontage housing in the majority of people is still a matter of importance.
  • The need to own a townhouse for business or self-employed is urgent. Especially the chain of shops, retail … is the trend of modern life.
  • The value of the profit from the townhouse is assessed to be quite stable compared to other types.
real estate investment
This is a type of investment real estate podnik investors.

But experts also warn that the risk from this form of investment is:

  • Big investment, payment value is almost 100% when conducting transactions.
  • If the area of the house is small, investors cannot be separated in the name.
  • The return on investment also depends on the cyclical nature of the real estate, difficult to adjust the price increase as desired.
  1. Investment apartment

Apartment investment is the trend of the new era when the land fund is more limited. Psychology near the center for the convenience of living still occupied the thought of the majority of people. With the investment of real estate investors notes the benefits to investors:

  • The investment capital is diminishing according to the progress of the project.
  • The profit is earned as soon as the investor selects the wave even when the project is not completed or completed or leased with high amplitude.
  • There is effective support from banks with long-term support policies.
real estate investment
Apartment investment is the trend of the new era when the land fund is more limited.

The downside of this kind of apartment investment is still not there:

  • Period of the slight increase, few cases of spike surge.
  • The virtual value of the media and advertising makes investors easily panic.
  • Fierce competition when supplies are excessively abundant. This has affected liquidity more slowly than expected.
  1. Investment in flower gardens and cemetery land

Despite the recent development in recent years but investment in the park, cemetery land is an investment channel that many real estate investors left the alley. Assessing the advantages of this type of investment can be seen quite a lot of highlights:

  • High demand, low supply creates the exciting market, good price.
  • High profitability, with projects recording profits up to 40-100%.
  • Support for legal corridors as well as procedures is quite open.
real estate investment
The risks from investing in the park and the cemetery are almost nonexistent or very low

It can be seen that the risks from investing in orchards and cemetery are almost nonexistent or very low. Especially, if other types of real estate investment are affected by the real estate cycle, the investment in the park is almost unaffected by the constant demand and low supply.

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Opportunities And Risk Of Real Estate Investment
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