The purchase of a flat has always been considered to be one of the most profitable and safe investments. There are several arguments in favour of this solution, such as the lack of an alternative with an equally high level of security and at the same time a decent profitability of the project and quite good liquidity in the event of the need to withdraw from the investment. What should we pay attention to when investing in the housing market?
The most profitable locations in the USA
A pragmatic approach to investment dictates that own resources should be invested in a place that guarantees the highest demand for offered housing. Therefore, it is justified to invest in dynamically developing cities.
Some large cities attract particularly large numbers of students and labour migrants. Investors appreciate the location of properties, the city. Apartments located in them are characterised by the highest net profitability rate in the USA. This term means that they generate the highest profits, taking into account the costs of taxation, running a business and the risk of searching for tenants.
Size of the apartment
Buying an apartment for rent or resale is different from buying it for your own use. You should take into account the possibility of a possible quick sale of the investment, as well as the attractive features of the property for potential landlords. The most popular are two- and three-room flats. Such flats are also easy to sell.
It is important that the flats are located in a place rich in urban infrastructure. Therefore, it is necessary to pay attention to whether there are sufficient number of retail outlets, schools, kindergartens, health centres, etc. in the surrounding area. The most important seems to be a convenient access to the centre of the village.
Optimisation of costs and revenues
The example of London best illustrates how important it is to choose the right place where the apartment is located. In one of the most profitable cities in terms of renting flats, one can find locations with particularly attractive prices per square meter of space.
Low price does not mean lower standards of construction, location in places separated from the rest of the city, poor in infrastructure or characterised by any particular inconvenience. One of the most attractive offers on the London real estate market is the investment of SDG Invest – . The estate is located at one of the main city arteries, with convenient access to the city centre, and at the same time it is surrounded by greenery, full of shops and public utility centres.
The average price of renting a two-room apartment in London is quite high and amounts to about USD 1,600. The cost of purchasing a 50 sqm flat housing estate is USD 235,000 (the price per sqm is USD 4,700). Even if the apartment is purchased on credit, the installment will not exceed USD 1,000 with 10% own contribution and 30-year repayment period. So it is easy to calculate how profitable the investment is.
Prospects
The habits of Americans are changing, more and more people want or are forced to change their job and, with it, their place of residence. In such cases, it seems unreasonable to buy a property and attach oneself to one place, so more and more people are using rented flats. Another group of people using rented flats are people who cannot afford to buy their own flats. Renting is still popular among students. As can be seen, the demand for flats is not decreasing, and taking into account the tendency of compatriots to adapt the customs of Western Europe, it can be assumed that renting flats will become a more natural way of ensuring a place to live than buying one’s own four walls. For those who want to profit from investments without unnecessary risk, buying a property is a good thing.
Does investing in an apartment make sense today
