Real estate investing is an investment option for those looking for a reliable stream of passive income and long-term capital growth potential.

If you're thinking of investing some capital, you've probably considered buying real estate, as it's one of the most profitable and safest investments in the long run.

However, it is important to fully understand the subject and enrich your knowledge, as all investments involve risk, small or large.

How does real estate investing work?

Profits can be generated in many ways and depend on the way the investor makes the investment. For example:

Some look for properties in less favorable locations, renovate them and then sell them at a profit.

Other investors seek rental income.

There are also investors who buy new property, expecting not only the increase in property value but also the income from a future tenant.

There are two main categories of real estate:

Commercial properties

Residential properties

What we need to know about real estate investing.

 

Investing in real estate is considered one of the most common forms of investment. The property often increases in value over time (long term) while allowing you to make a profit through rental.

Also, from the moment you buy the property, you have a certain asset, while to some extent it offers you stability in your life.

Here we must note that investing in real estate is not always easy and does not depend exclusively on the market. There are many other factors that affect the success of this particular investment and these are:

1. The location of the property. If a property is located in a remote area, it is possible that there is no rental demand and it may not perform as well as you would expect.

2. The demand for real estate in the area and the total sales and leases of real estate.

3. The cost of repair and maintenance work. This often includes repairs, renovations and upgrades to the property as well as cleaning and maintenance of the building. You should also ensure that the property meets all the required specifications against catastrophic situations such as fire or flood.

4. The level of return on investment in relation to the rent to be agreed.

5. The prospects of increasing the value of the property.

6. Expenses and any interest rates for a purchase loan as well as the costs associated with the property purchase, such as taxes, bills, and other costs.

These factors should be taken seriously when making real estate investment decisions in order to ensure a profitable return on investment.

What are the pros and cons of real estate investing?

Positives:

Buying real estate can prove to be very profitable in the long run compared to other investment schemes.

Negatively:

Investing in real estate involves issues of liquidity, taxes and maintenance costs.

Buying real estate requires expenses for taxes, commissions and fees, in addition to the cost of the property.

Real estate prices tend to fluctuate during times of geopolitical and economic crises.

Over-borrowing can make it difficult to repay a property if its value falls below the loan amount.

In summary, if you are thinking of investing in real estate, then you need to consider the pros and cons, the risks and of course the return.

Only then will you be able to make the right decision.

Consult the experts. The team of INVESTA Real Estate - properties Larissa, is immediately at your disposal.

* Thanasis Stamou is the director of INVESTA Real Estate. He has experience in the field of Real Estate since 2005. He is a real estate agent, appraiser, negotiator and investment advisor. Specializes in training Real Estate Consultants.