Thursday, September 18, 2014

Current market trends, neighbourhood and actual value of property are the important factors affecting profit generation from asset investments. But you can’t ignore the method you have chosen to make profits with real estate investments. If you want to make profits with real estate investments, you will need to know about primary methods of making profits. You need to think smart in order to choose most suitable investment option to maximize the chances of earning profits.

How to make profits with real estate investments?

Making investments in estate market is an excellent way to get good returns. Even you are not restricted to buy a property unit and renovate it to resale with profits. You can even invest your money in stocks, bonds in a property development. But, those who want to learn primary ways of making profits with real estate investments, they should consider following profit making techniques.

By Increasing Value of Property

It is an intelligent way to make profits with asset investments. In order to take real advantage of this method, you need to make some real efforts to increase value of property. Don’t sit and wait to observe the inflation rate to sell your asset on profits. Perhaps, you will get a chance to sell your assets on higher prices, but that will not actually the real gain. The only way to make handsome profits upon selling your assets is possible with making necessary upgrades to make your property standout among the cluster. You can easily enhance the value of your asset with simple efforts like basic cleaning, removing of clutter and applying fresh paint. Moreover, your house may need some necessary repairs like broken flooring and fused light bulbs. You can resolve such issues by installing new flooring and new lights and switch boards. Such minimum efforts will help you resell your assets with good profits.

By renting out the property to tenants

Renting out residential and commercial assets has been an old way to generate monthly or yearly income. It can let you earn profits in long run. Good thing about renting is that governmental authorities allowed increasing the rent rate to certain limit according to specific rental cap rate. Let’s take an example of Dubai property market, where Real Estate Regulatory Authority RERA (the regulatory arm of Dubai Land Department) provides guideline about rental cap. Rental cap is beneficial for both tenants and homeowners, as it protect tenants from experiencing uncontrolled rental hikes. Whereas, homeowners get the legal right to increase rents to certain limit that will let them earn profits.

By carrying out business activities

Suppose you own a commercial property like hotel, office space or storage area. You can use your property for certain business activities to make money, even without renting or selling it. You can rent out parking space of your office building to generate income, same way you can sell on demand items for your hotel guests or you can choose to offer any kind of services that interest you more including everything from laundry, car washing, and repair services for home appliances at your commercial office space. In order to make profits by performing any type of business activities you need to possess good knowledge about the specific one you are going to opt for.

These are the three simple ways to make profits with real estate investments. It is a huge industry and professional investors use several other secondary strategies to make profits.

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1 comment:

  1. Good knowledge you share for investment properties.