No wonder so many people in the world prefer to invest their spare money in real estate. It’s tangible, reliable and brings good passive income. Say, according to the recent research, those who bought property in China or the UAE on last Christmas Eve, could have sold it a year later with a price premium of 10 %.
Still, as any other income-bringing activity, property investment is a risky sphere as well. A nice example is Hacienda del Alamo, a Spanish ghost town, which once again proves that property prices go down, as well as up. Wealthy retirees of Great Britain and North Europe, who traditionally chose Spanish costs to diversify their property investment portfolios, have gradually become unable to afford living in all-year resorts and turned their eyes to the Baltics.
A common error, especially typical for first home buyers, is overestimation of future receipts and undervaluation of expenditures. Any finance advisor would tell you that high unexpected expenditures are the prevailing reason for many landlords’ failed hopes. Faulty wiring, overdue rents, a tenant’s injury due to your property’s poor condition – all that means enhanced responsibility, including the risk of lawsuit.
However, proper finance and legal advice enables thousands of people in the world to provide dwellers with shelter in return for good money. Let us say that renting out a furnished four-room apartment for a middle manager brings its owner about $ 2.630 on average in the world. By the way, the most costly square meter for sale (on average) is reported to be in Monaco – roughly $ 60.000.
And if you want to invest in something extremely beautiful and affordable – choose an island in Panama: $ 30.000, 0.3 ha, sweet fishy lake, monkeys, parrots, toucans and tapirs Think, choose and invest!