There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?
I have worked in the real estate business and I know some secrets and tricks that happen in this niche but all of my knowledge applies to the local market of my country, I have no idea how things work in other countries.
In my country, when a company builds a residential apartment, they sell every apartment but leave the first floor for themselves. The first floor is always a commercial part. Pharmacies, supermarkets, banks and every company pays a huge amount of money to rent commercial parts for their businesses. Companies that build residential apartments, leave the first floor for themselves and rent it out but they sell every other room of their built apartment.
Another way that they make money is that some companies also build gyms inside the apartments. People who live in apartments and workout at the same time, have to pay for GYM membership to use the GYM that's built in their house instead of going to another GYM that's far away from their house.
Building companies also offer residents a security service and earn additional money from it.
That's what I know at the moment. There are also premium residential apartments where they have pools and many luxury places or services but that's for millionaires and this type of business works differently.