A guide on real estate investments
"Investing in bricks and mortar still convenient?" Are not few in today to ask this dilemma. The difficult economic environment and the changing fiscal conditions have alerted a population that has always been the primary ambition as "home", not only by way of purchase for a first home, but also for pure investment.
We try to figure out whether it makes sense to invest in bricks and mortar again!
We assume that it is in times of crisis the great opportunities that arise.
Today as never before we have seen a series of concurrent events favorable for buyers.
The need for liquidity on the part of the middle class, the high fiscal costs and management of real estate, the great offer on the market not only traditional (but also caused for example by judicial auctions), make that the market perceives the new light definitely positive.
Statement even more valid when it comes to luxury properties.
The owners have started to sell and even to "sell off" in some cases absolute value of properties such as villas, country houses, castles, offices and even commercial activities such as hotels in the most desirable cities in the world.
A speech, in fact, that applies not only to the Italian market, but on the whole global system, from Europe, America, Asia, and Oceania are occasions of the highest cultural, artistic or economic.
Obviously it is not easy to identify quickly the real deal, but we try to give some useful insights. Assuming the natural qualities of the buyer such as a nose for the deal, we can say that without a shadow of a doubt, the potential buyer must have patience and curiosity in the ropes.
In a market like the current one characteristic offerings are many, you have to have patience carefully selecting the property from thousands of proposals.
Once this screening is necessary to make a true estimate of the property, not only based on market prices in the area, but at least also on the geographical location, on the historicity of the same, on the demands of the area and on the economic / political state when you decide to invest.
From a financial point of view it is essential to assess the likely return on investment, based on the potential costs of renting the property.
Doing a fast calculation can be said that a property whose revenues cover costs in 20 years, guarantees an income of about 5%, unforeseen apart.
But be careful! Reasoning on a financial level has often led to think of the dry return on investment, without considering that the property is not a financial return, but an asset whose value lasts over time, but often mature.
One can therefore say that a property whose income is equal to the best financial returns on the market is an opportunity!
The opportunity is even greater if the buyer has the ability to "treat" the request. In a market where often the buyer is willing to go down by 20% over the asking price this activity allows an exponential increase return on investment.
The interesting real estate transactions on the Italian market are many, are clearly suggested the cities of art, the apartments with views of the front row or in the lake and the sea (albeit with significant differences from region to region), properties in the most sought after locations of mountains and houses with large agricultural land (best vineyards), and in general everything that is connected to the rich history of our country.
In reference to the foreign market is superfluous to suggest emerging countries such as South America, the Caribbean and Eastern Europe area albeit with a higher risk as it relates to the political / economic.
The bravest can also embark on unexplored markets such as Asia or Africa. They are definitely the safest investments in the Mediterranean (Spain and France in particular), the major European cities (London, Paris, Madrid, Prague, Vienna, etc. ..) and American (New York, Miami ...).
In the light of what is said and making a right mixture of all the above factors it can be said without doubt that the property is still one of the best investments on the market!
So investors ...... the hunt is on!