Investment Property
The topic of investment is quite relevant today, as more and more individuals with high salaries and stable or growing incomes are also thinking about how to effectively manage their savings. Setting aside options like deposits or other types of investments, let's focus on investing in real estate.
So, what is an investment property?
An investment property is a type of real estate that is bought and held with the purpose of earning rental income or gaining profit through an increase in the property's value over time. Of course, there might be cases when a property is acquired with both of these goals in mind.
What kind of property can be considered an investment?
Investment real estate includes both constructed buildings and plain plots of land.
Land that is held over a long period, with the expectation of selling it when its value peaks, is considered an investment. Plots of land can also be bought with the intention of building on them to later lease the constructed objects, such as residential buildings, hotel complexes, etc. However, property that is acquired with the aim of selling it quickly does not qualify as an investment property.
A building or structure that can be rented out for various operational purposes. For example, a business center where different organizations rent office space.
A residential building that is purchased and held for the purpose of improvement and rental also qualifies as an investment property.
Houses or apartments that an investor buys not for personal use, but specifically to rent out.
Who is interested in investment property?
Investing in the real estate market attracts a wide range of investors including government agencies, local governments, domestic and foreign businesses, as well as individuals who want to manage their money wisely. Acquiring real estate can provide these investors with a stable, long-term income.
Isn't buying an investment property risky?
Any investment carries a risk factor, and to be insured against it, it's necessary to forecast the income, potential costs, and losses that might arise from the investment. No matter how appealing prospects of investing in the real estate sector are, it's important to consult with experts in the field to avoid potential risks and ensure the investments are both effective and profitable.