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Topic: Which is More Profitable? (Read 2145 times)

hero member
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September 27, 2024, 08:37:46 AM
you are right, that selling a house or apartment will get a lot of profit and more instant than renting it. However, sometimes people who rent their houses do not want to sell their houses. they choose to live in a new place, but still want their old house as an asset and investment. So, what they do is rent out the house they own. it will have at least two advantages, the first is that their house may still be maintained by someone else, the second is that the assets they own will have a high price every year.
Selling a house or apartment or other with cash payment can certainly make us have more instant profit, different from renting it. Another thing that might happen if we rent a house is a traffic jam when it's time to pay, I know not everyone is like this but I experienced it where I sold the house but the person who was interested only wanted to rent it not buy it, I decided to give it with a rental system but a few months later the tenant experienced a payment delay, with several times I have given the opportunity but there was no change for the better until finally I reluctantly asked the tenant to leave the house he was renting.
Renting a house is one way that can be done to seek profit or income in the long term, and as you said with two things that are likely to be profitable with a well-maintained house and long-term income, this is a fairly reasonable solution and in my environment there are many rich people who do this.
full member
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September 27, 2024, 05:14:27 AM
Focusing on flipping of houses would be more profitable than waiting on rent. Actually, selling houses is a business, and shouldn't be a one time thing, the money generated from selling one property, can erect another one, which can still be sold. All the same, a rented house wouldn't raise enough money to build its replica in a short time. Therefore, the owner is not interested in selling houses, but wants a stream of income that doesn't ask for his time anymore.
you are right, that selling a house or apartment will get a lot of profit and more instant than renting it. However, sometimes people who rent their houses do not want to sell their houses. they choose to live in a new place, but still want their old house as an asset and investment. So, what they do is rent out the house they own. it will have at least two advantages, the first is that their house may still be maintained by someone else, the second is that the assets they own will have a high price every year.

If we want a return on capital in the near future, it will indeed be better to sell the house that they have built and that's right, as you said, there are some people who choose to rent and they will be able to be patient in terms of return on capital, but over time, if the house is well maintained, of course the price will continue to increase and also this is more profitable for them and make the asset an investment for their future is also good However, they must still take good care of their house so that in the future it is still worth buying at a high price because the house is still livable.

When we choose to rent, of course we have to occasionally keep control of the house and if indeed the tenant does not take good care of the house that we rent, then it will be better for us to no longer continue to rent to them so that the house we have is damaged or there will be many things that must be repaired after we rent to them.
legendary
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September 26, 2024, 11:01:10 PM
Focusing on flipping of houses would be more profitable than waiting on rent. Actually, selling houses is a business, and shouldn't be a one time thing, the money generated from selling one property, can erect another one, which can still be sold. All the same, a rented house wouldn't raise enough money to build its replica in a short time. Therefore, the owner is not interested in selling houses, but wants a stream of income that doesn't ask for his time anymore.
you are right, that selling a house or apartment will get a lot of profit and more instant than renting it. However, sometimes people who rent their houses do not want to sell their houses. they choose to live in a new place, but still want their old house as an asset and investment. So, what they do is rent out the house they own. it will have at least two advantages, the first is that their house may still be maintained by someone else, the second is that the assets they own will have a high price every year.
hero member
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September 26, 2024, 04:57:51 PM
I think you are taking about buying reselling,, I  assume that this is more profitable because, once you have a buyer, you can get your capital back along with the profit you made. , believe it or not, there are a lot of people looking to purchase a home, you can also make these available for renting , that way you can earn passive income
In the global condition, I don't think that many does like a home. With people explaining that renting right now is an option for the most because it's not pressuring at all, this what the many working class is doing right now.
Goodbye to the dreamhouse and they rent out, so the landlords are still earning from this. The location is the key factor on this, if there are a lot of establishments close to the land, if he wants one big pay day then sell. But if he sees long term on it, rent and develop.
full member
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September 26, 2024, 04:49:36 PM
I think you are taking about buying reselling,, I  assume that this is more profitable because, once you have a buyer, you can get your capital back along with the profit you made. , believe it or not, there are a lot of people looking to purchase a home, you can also make these available for renting , that way you can earn passive income
sr. member
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September 26, 2024, 10:05:10 AM
That's why everyone earns in their own business but they give more importance to their business and better they invest money in their business. But at the beginning of the business it is not so easy for anyone to earn profit by doing business. There are many companies or many entrepreneurs who after starting a business faced many challenges and invested a lot of money and at the end of the day they returned home empty handed. No matter what business you are in, patience plays an important role in taking risks. If you can do these things correctly then you are more likely to succeed in business.
I don't think your opinion is inline with what op said. If you read carefully you discover that what op is reffearing to is building house to rent out and building house for sale that which is more profitable to each other?
Well according to your statement you said patient plays a role in taking Risk, but I can tell you that not all business is worth risking and being patient for. Sometimes patient is not the only way out, expecially when you are doing something for a longer time and yet no positive result, you need to restrategise and find an alternative. But in this context of op, I believe building of house and selling to recoup their fund is not for everyone like I said earlier but if I am in a position to do that I will just build and sell for sometime and make profit to build for rentage.
newbie
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September 26, 2024, 05:59:05 AM
That's why everyone earns in their own business but they give more importance to their business and better they invest money in their business. But at the beginning of the business it is not so easy for anyone to earn profit by doing business. There are many companies or many entrepreneurs who after starting a business faced many challenges and invested a lot of money and at the end of the day they returned home empty handed. No matter what business you are in, patience plays an important role in taking risks. If you can do these things correctly then you are more likely to succeed in business.
hero member
Activity: 2352
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September 26, 2024, 05:23:43 AM
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.
member
Activity: 106
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September 26, 2024, 04:23:31 AM
When one is choosing between renting out and selling, then both activities are good weather for rent or for sale. Leasing gives the opportunity to count on passive income and obtain a good return in the long term if the object’s condition is properly cared for. However, selling proffers instant gratification, which can be recycled in the market instantly. Personally, I always favor renting, as it presents a real opportunity to earn passive income and gradually accumulate capital. Still, if you are in need of the immediate cash, then selling is the right thing for you. It will all kind of depend with the financial target plus the investment plan that you have. What have you learned concerning this business especially concerning real estate investments?
full member
Activity: 102
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September 26, 2024, 02:32:39 AM
I’m not into real estate but I’m into business and I believe all businesses have one motive which is to maximize profits, so in this case I think when you have a property that is completed and you yet to decide which will bring you more profit which is either to sell it off once and for all or to rent it out and get paid every year. If I’m in that position I think I rather rent it out and get paid yearly tho renting out yearly won’t get you the money you want instantly but you will get paid abit that year and can still sell off your property anytime you want just that it won’t cost as much as when you just finish completing it

Again if you choose to sell off your property immediately after completing it still makes a good money in most cases you can get over 80% profit because new properties attract more richer people. So I think either way when you evaluate both options there isn’t much more difference in the profit margin. This is because when you rent out your property you ought to make maintenances every now and then and your continue to depreciate every year so it selling even when you decide to later sell it off the property won’t worth much again.
copper member
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September 25, 2024, 10:57:39 PM

Focusing on flipping of houses would be more profitable than waiting on rent. Actually, selling houses is a business, and shouldn't be a one time thing, the money generated from selling one property, can erect another one, which can still be sold. All the same, a rented house wouldn't raise enough money to build its replica in a short time. Therefore, the owner is not interested in selling houses, but wants a stream of income that doesn't ask for his time anymore.
It sounds very easy when you say it. But trust me, flipping a house is not as easy as it sounds. The pricing of the house is never stable. Yeah, in the long run, it does go up, but so does inflation. So if you are willing to make a good profit, you need to be waiting for the right time. So you don't actually get money instantly to buy/build another property (by erect, I am assuming that is what you said). There might be also a case where you bought the house during a housing bubble (like right now). If you aren't able to sell it at the right time, very highly likely you will be losing a lot of money when the bubble bursts.  On other hand renting is a continuos source of income/money for you. People will never stop renting and it is very unlikely that a rent goes down. Rent out few apartments/buildings, you will be set for life.
hero member
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September 25, 2024, 08:00:27 PM
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?

In your words recovering which simply means to get back what was used, in order to get back your investment selling is the best option if I'm to answer this  question correctly, but when you are focused of making profit added to your capital investment then renting seems to be the best option because whatever generates money consistently would supercceed a fixed amount gotten at once. Renting it out would be more profitable in the long run you just have to be patient

Focusing on flipping of houses would be more profitable than waiting on rent. Actually, selling houses is a business, and shouldn't be a one time thing, the money generated from selling one property, can erect another one, which can still be sold. All the same, a rented house wouldn't raise enough money to build its replica in a short time. Therefore, the owner is not interested in selling houses, but wants a stream of income that doesn't ask for his time anymore.
full member
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September 25, 2024, 03:04:30 PM
Selling the properties off at a higher price is better than putting it on rent because the truth of the matter is that there is always what people call depreciation value, so over Time the  properties begins to loss value and begins to depreciate .
Selling the properties off also is better because you are getting immediate returns on investment so you can use the money that you have made from the small of the property to start a new project thereby increasing your properties and over time if you continue this way you begin to acquire many properties and become wealthy
 
hero member
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September 25, 2024, 10:50:57 AM
Basically, real estate is bought with a mortgage, especially recently when real estate prices have grown so significantly. Renting housing is also popular, because there are many people who often move and do not like to stay in one place for a long time, or other reasons, such as temporary work or study. Building real estate for the purpose of selling will be profitable only if this is an established process for the developer, if he has everything necessary for this, and trying to build a house yourself when you need to hire contractors, equipment and machinery, it will be so expensive that you can only start this if you have good capital for this.
Obviously it will be according to the place and not all of them are considered suitable when a survey of the needs is not carried out first. But if you look further, building real estate requires a lot of capital and people will not get big profits if they are only able to build one or two houses. While building a house for rent does not need to be made so luxurious because the most important thing is that the house is comfortable to live in so that the owner can make the rental price a little cheaper and people will be interested in renting it.

Both of them do have good potential because every day houses are increasingly needed with the surplus of increasing population numbers. Land is so expensive and the construction costs will also be higher so that most people cannot afford to build a house and the solution is to rent or buy from a developer.
legendary
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September 25, 2024, 04:04:38 AM
Before everything is done, people definitely see the potential that is profitable, both building a house to sell and building a house to rent because basically the place determines which direction is more profitable. In urban areas, land prices are very expensive so it is difficult for ordinary people to build houses so in conditions like this people will look for houses to rent as a place for them to live while working. The potential for rental houses in conditions like this is quite profitable because people can rent out houses with a monthly payment system.

But building a house for sale can also be profitable as long as the investor is willing to give the opportunity to a third party as a manager. For example, the house is made a credit system through a bank so that the person who buys it can pay in installments even though in a further stage the buyer is not so profitable because of the burden of paying off.

Basically, real estate is bought with a mortgage, especially recently when real estate prices have grown so significantly. Renting housing is also popular, because there are many people who often move and do not like to stay in one place for a long time, or other reasons, such as temporary work or study. Building real estate for the purpose of selling will be profitable only if this is an established process for the developer, if he has everything necessary for this, and trying to build a house yourself when you need to hire contractors, equipment and machinery, it will be so expensive that you can only start this if you have good capital for this.
full member
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September 24, 2024, 12:50:10 PM
developer company build a apartment to sell it immediately whatever profits they can make, but most of the time they did not take it for rent, renting is another business, who are not interested to short term business and they want to several times high profits they will go to rental business for long time.

Yes bro, it will be more profitable for the renter, but we have to have quite a large amount of capital to buy a reputable apartment, but when someone rents it continuously then little by little our capital will return as time goes by, their property company just build then they will sell all the property then they look for another place to build new property then they will sell everything too, because they adjust the main capital then they sell everything then they receive profits from a property project.
copper member
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September 24, 2024, 12:05:59 PM
I believe it depends on the place that you have. If it is a good location that makes yourself prime to renters, it would be best to have to rent it out. If not then just sell it. If you don’t need the money right away, I think it’s okay to rent it out as well.

If it’s residential, I believe selling it in a way that you can rent to own and have good tenants would give you ROI IMO.
full member
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September 24, 2024, 11:58:56 AM
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?

Both selling it out and renting it are profitable. You will be the one to choose. If you build it to sell it immediately, you should know the value you will sell it for because, as time goes on, the house value will continue increasing based on how the location gets developed. You know the house value gets appreciated based on the location where the house is located, but if I should be the owner of the house, I will rather rent it.

Even though it is a slow process of recovering my money, I think it will go a long way for me because I can increase the house rent at anytime I want, so renting it out will give me more profit than selling it out, even though the money will not come at once.
developer company build a apartment to sell it immediately whatever profits they can make, but most of the time they did not take it for rent, renting is another business, who are not interested to short term business and they want to several times high profits they will go to rental business for long time.
hero member
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September 22, 2024, 11:35:18 AM
Yes, you are right, we also have to see if the place is strategic enough to be used as a place where we will build a residential house that we will then rent out, because not all places are suitable for building a business like that. Like in villages for example, most of those who live in villages already have their own homes and also usually they also migrate to big cities to work. Previously we had to do a survey first whether the place was good for building this business or not, that's why we have to have very good planning. Usually in big cities or places close to industrial factories are very suitable places, but the problem is that land in places like that will be very expensive and it requires a very large initial capital.
Before everything is done, people definitely see the potential that is profitable, both building a house to sell and building a house to rent because basically the place determines which direction is more profitable. In urban areas, land prices are very expensive so it is difficult for ordinary people to build houses so in conditions like this people will look for houses to rent as a place for them to live while working. The potential for rental houses in conditions like this is quite profitable because people can rent out houses with a monthly payment system.

But building a house for sale can also be profitable as long as the investor is willing to give the opportunity to a third party as a manager. For example, the house is made a credit system through a bank so that the person who buys it can pay in installments even though in a further stage the buyer is not so profitable because of the burden of paying off.
jr. member
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September 21, 2024, 03:41:43 AM
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?

That's an easy question, renting it out is more profitable because it will become a source of income for you in the future, if you decide to the building you are not been investive and it can't be compared to the income it would generate if that building is on rent but it all depends on your plan and what you want at the moment, most people would rather put their building on rent instead of just selling it out, as time goes on you would make a lot of Profit
Yes, it looks very easy for you to answer. When building a residential business, does someone not use a loan to carry out the construction? As far as I know, building a residential business such as an apartment requires several collaborations, including construction and architecture. What if the person runs his business using a loan? Is renting an alternative? Meanwhile, we must immediately fulfill the loan costs that we apply for before they are due.
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