Real Estate Investment
Real Estate Investment
Real estate investment is one of the most famous investment fields in the world, as it provides constant income for individuals, companies and governments, and this income is characterized by increasing with the passage of time, and it is one of the safe types of investment due to its dependence on one of the people's basic needs, which is housing.
Types of real estate investment
Investing in land
The investor can buy a piece of land in one of the sites of importance, whether it is commercial or residential, then wait for a period of months or years and resell it again at many times its original price, as the prices of lands in general increase their prices over time, depending on a number of factors Mission such as location, services, and developments in the area.
Residential real estate is one of the safe types of real estate investment; As the demand for residential real estate increases permanently due to the increase in the population, and it is one of the simple investments where the investor, in the event of renting them, acquires a stable financial return, which may increase with the increase in the rental of real estate, so it is necessary to invest in a growth area, to continue leasing or selling it when needed, The investor in the field of residential real estate may face a number of obstacles, the most important of which is the need for homes every period of a maintenance process to preserve their value, and it may also face some tenants who may be stuck in paying the rent, or refuse to pay compensation for the damage they inflicted on the property.
Selling residential units
The process of selling residential units takes place through several methods, namely:
The investor builds an entire residential building, and sells the entire building or each apartment separately, and contractors often follow this method. As this method requires a large capital, and often either the contractor owns it or has partners with a percentage of the profits, or resorts to obtaining a loan.
Buying residential units for sale, and many investors do not rely on this method despite the fact that it provides a large financial return, because it requires large capital, and the use of brokers to obtain real estate at a price lower than the price at which he wants to sell it.
Buying housing units and repairing them before selling them, and in this way the investor pays money after buying the house, taking into account improving its shape, installing ceramics, changing doors and windows, or modifying the design, which contributes to beautifying the house and raising its price when selling.
Investing in commercial buildings
It is one of the best types of real estate investment; It includes parking lots, markets, centers, shops, warehouses and stores. A number of factors affect the success of this type of real estate, such as municipality conditions, safety regulations, good design, and marketing. This investment is done through several methods, namely:
Establishing and leasing a commercial building: It is considered one of the best types of investment, where the investor buys a large plot of land to build a huge commercial building, and leases it either in full or by dividing it into small units and renting them out.
Construction and sale of the commercial building: This method depends on the location and the area of the land, and after building the building, the investor sells it completely for more than the construction cost, or sells it in the form of small commercial units, and the second way of selling is more profitable, but it needs a longer period.
Establishing a commercial building with partners: For the investor to implement this way, he must own a plot of land in a privileged location, and seek the assistance of a company to construct the building in exchange for a percentage of the profits or obtain commercial units to benefit from it.