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Topic: Which is More Profitable? - page 4. (Read 2145 times)

full member
Activity: 241
Merit: 100
September 15, 2024, 07:50:12 PM
With the current economic crisis and high real estate prices, capital recovery should be considered in both leasing and selling. Not everyone wants to buy for the purpose of living and settling down long term and not everyone has enough money to buy that apartment outright.
Except for short-term surfing cases of buying and selling. My opinion is that op still maintains the high purpose of selling and combining with leasing to maintain the ability to recover capital smoothly to dilute loan packages (if any).

In conditions of economic crisis, it will indeed be very difficult to be able to have a return on capital from investing in real assets because everyone will of course first fulfill their needs rather than thinking about their long-term residence, although everyone wants to have an apartment or house, of course they must first save and also have to work harder to be able to have money that they can save to achieve their desires.

Choosing to sell or rent assets that you already own will indeed help you to return the capital that you have spent to build real assets, but if you choose not to sell them, of course in the future the price of the real assets will continue to increase, but it will take a long time if the area of ​​the real assets is in high demand, of course the price will continue to increase.
hero member
Activity: 742
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casinosblockchain.io
September 15, 2024, 06:24:00 PM
This current economic situation is actually not favoring almost every sector because of inflation. The cost of everything is going up same as building materials, because of the high cost of leaving and materials, building house is not more profitable if you are building for selling purposes, that is why hotels are becoming more rampant because building a hotel is more profitabe than building a house for rent because the payement will be daily, while an appartment payment will be annually.
In my opinion, I think building a house for sell is good, and also building a hotel is also profitable..
Yeah you made a solid point here about the rising cost of building materials due to the inflation condition which has affected the cost of everything. And the location is also a variable to be considered for someone who's building to sell because with the high rising cost of building materials you could spend money building a house in a location where the market value may not bring profit compared to money spent in building the house.

Wherefore you may see hotel business as been lucrative than building for annual renting but have you considered the cost of hotel maintenance, the resources to keep it in business may ware out the owner if he doesn't has what it takes to stay competitive unlike rental where there's little or no competition at all.
hero member
Activity: 896
Merit: 550
September 15, 2024, 05:12:57 PM
This time I will share a little opinion with the OP about the most profitable investment in the future. in several reviews you discuss the money involved in real estate and the money spent on building an apartment can be returned by investment, when the money spent on building an apartment is what is called property investment which is very appropriate if you want your money back, one way is to sell the apartment it can also be profitable quickly. I have several ways, if you have an apartment, rent it out for the long term and sell some of it so that you can get 50% of the money back.

I can try investment that can hold my capital down even though I don't get a cash flow but I will not invest in something that will tie down my capital and also require some maintenance service cost in the future, it might be profitable in the long run but my current financial goal can't handle such investments and that's what I see in this real estate thing. If you build and you don't sell on time and decide to rent out, you will be making money but their will be cost of maintenance.

Bitcoin for instance is a capital intensive investment, not cash flow and it's better but if you have enough, you can still turn it to cash flow if you stake it or use it as loan but as I said you have to be smart about it if you decide to try something of this nature. If you don't have the money to go high in real estate and you don't have another source of income after the establishment, you will be frustrated later in the future but it's more profitable for long term.
sr. member
Activity: 1204
Merit: 290
September 15, 2024, 03:40:59 PM
The profitability can vary from a wider aspects based on the types of business one ventures in , the market demand, like having a higher demand in the supply of your business, another thing is the location and management, when you have a standard location for your business,it gives you a visibility to attract customers for your business.
A poor management brings down the stardard and structure of the business,but when you have a good management your business will go smoothly and profitable.
It's very necessary to conduct a thorough research on any business before investment to consider your risk and Goals

Well, you are talking about it from a perspective like it's any other business but what is being discussed here is real estate, but I agree with your points.

Even in the real estate business, the location of your properties and their management plays a vital role. I have observed and it is said by real estate professionals that whether you are selling or renting a place, be it an apartment, a store, or anything in general, a maintained property would bring you higher rates and better customers because everyone like renting or buying maintained, clean, and tidy places.

If we talk about the ROI and whether one should rent or sell a property after buying it, I believe it depends on the person's mindset and what they want in general from this business. Many people believe they get better profit if they buy, renovate, and sell immediately, and many say it's better to rent out and get rent money every month. I would say the first option is better because maintenance costs can become a problem over time when you are renting your properties unless you are very choosy with the tenants you rent your properties to.
member
Activity: 176
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September 15, 2024, 01:44:17 PM
The profitability can vary from a wider aspects based on the types of business one ventures in , the market demand, like having a higher demand in the supply of your business, another thing is the location and management, when you have a standard location for your business,it gives you a visibility to attract customers for your business.
A poor management brings down the stardard and structure of the business,but when you have a good management your business will go smoothly and profitable.
It's very necessary to conduct a thorough research on any business before investment to consider your risk and Goals
sr. member
Activity: 616
Merit: 274
September 15, 2024, 12:46:19 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 fact, by renting out an apartment, the investment profit can be obtained within 1-4 years, where I once asked a rental owner who had 6 residential doors, in 3 years the construction funds had been returned and the rest he got profit
I think it is better to rent it out than to sell it
In my opinion, building a residential apartment requires a lot of money to build this business, of course there is a lot of involvement in it, both licensing and cooperation between developers, construction costs and loans. If everything goes smoothly there is no harm in selling the unit, of course at a much higher price, to cover the costs incurred during the development process, of course the target is not for the lower class but for the upper middle class to buy it for this residence.

However, no matter how expensive the price of an apartment house is, of course many people are looking for it both as a place to live and as an investment for the buyer. If you rent it out, what you say is not wrong, but it would take a very long process to reverse everything.
full member
Activity: 784
Merit: 108
September 15, 2024, 10:16:00 AM
With the current economic crisis and high real estate prices, capital recovery should be considered in both leasing and selling. Not everyone wants to buy for the purpose of living and settling down long term and not everyone has enough money to buy that apartment outright.
Except for short-term surfing cases of buying and selling. My opinion is that op still maintains the high purpose of selling and combining with leasing to maintain the ability to recover capital smoothly to dilute loan packages (if any).
sr. member
Activity: 700
Merit: 348
September 15, 2024, 10:02:50 AM
This current economic situation is actually not favoring almost every sector because of inflation. The cost of everything is going up same as building materials, because of the high cost of leaving and materials, building house is not more profitable if you are building for selling purposes, that is why hotels are becoming more rampant because building a hotel is more profitabe than building a house for rent because the payement will be daily, while an appartment payment will be annually.
In my opinion, I think building a house for sell is good, and also building a hotel is also profitable.
But people that has already invested in real estate in the past will have more profit than people that just invested.

I think this has to do with location and the nature of society. Building hotel in some society is as good as having abandoned project because it won't yield any profits or probably little return at the end of the day while renting apartments generate profits no matter little irrespective of the location. The fact that hotels is becoming rampant in every angle has decreased how lucrative it used to be in the olden days. Building a house for sell in my opinion is the least profitable among the three options available here.

Building a hotel or renting generate income continously and in few years, you'll recover the initial capital despite the maintenance cost but building a house for sell will only give you one time profit and you'll hardly get x2 of your investment. The nature of environment contribute a lot when it comes to renting and building hotels in terms of profit.

I have several ways, if you have an apartment, rent it out for the long term and sell some of it so that you can get 50% of the money back.

Is it possible to sell 50% of apartment? How convenient do you think the buyer will be sharing apartment with tenants that are not his own? Moreover, selling half of apartment will decrease the return and making the expected period to recover the initial capital longer. It is either you rent out all or sell all unless it's a different apartment in different plots.
sr. member
Activity: 1568
Merit: 324
https://duelbits.com/
September 15, 2024, 08:47:13 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?

This time I will share a little opinion with the OP about the most profitable investment in the future. in several reviews you discuss the money involved in real estate and the money spent on building an apartment can be returned by investment, when the money spent on building an apartment is what is called property investment which is very appropriate if you want your money back, one way is to sell the apartment it can also be profitable quickly. I have several ways, if you have an apartment, rent it out for the long term and sell some of it so that you can get 50% of the money back.
hero member
Activity: 952
Merit: 742
September 15, 2024, 08:33:47 AM
Just like most members here have already said, it depends on the kind of real estate investor one is. Currently, the world's economy is not smiling and the prices of building materials keep increasing as the day goes by. The cost at which one builds an apartment will definitely not be the cost at which he will build that very design of apartment tomorrow because the price of materials and even labour will go up. If the investor calculates all the cost involved in building a house today and sells that particular house, chances are that he will spend even more building that same house again tomorrow. I am using the current economic situation in my country as a case study.

Except the investor just wants to sell off the house outrightly without any intention of rebuilding, I think renting out the building will generate more returns and is even more profitable than an outright sale.
This current economic situation is actually not favoring almost every sector because of inflation. The cost of everything is going up same as building materials, because of the high cost of leaving and materials, building house is not more profitable if you are building for selling purposes, that is why hotels are becoming more rampant because building a hotel is more profitabe than building a house for rent because the payement will be daily, while an appartment payment will be annually.
In my opinion, I think building a house for sell is good, and also building a hotel is also profitable.
But people that has already invested in real estate in the past will have more profit than people that just invested.
legendary
Activity: 2044
Merit: 1075
Leading Crypto Sports Betting & Casino Platform
September 15, 2024, 05:58:02 AM
Both have good prospects but the returns or profits obtained are not in the near future. But as far as I see especially in my area the prospects for both are still the best investment choices that people make. It takes a lot of capital to build a house so this kind of investment can only be done by people who have enough money.
Real estate is one of the most profitable businesses in the world but as you mentioned, it's not for everyone because only those who have a lot of wealth can get their hands into this business because it requires a large capital for one to start. If you get into real estate with a limited amount, you will barely get good properties and if you don't have good property, you won't have good profit on resale if you are buying and selling, or you won't get good rent if you are willing to rent and get a small amount every month while owning the property.

When we talk about whether renting or selling is better, I would say it depends on each individual and what they want to do. Both have their pros and cons. If someone wants to get some profit on a property they have bought, they would wait for a few months and then sell it at a higher price, but if someone wants to keep the ownership of the property, they would rent it out.

Apart from all other pros and cons, it also depends on where the property exists, whether it's a location that is in-demand and the rates of properties are rising very fast or it's a location where there isn't much development.
sr. member
Activity: 588
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September 15, 2024, 04:46:17 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?
Real estate is an asset and it generates profit overtime making it worth to invest in. You can choose go sell it and still get a good amount of profit because the cost of building materials increases overtime. There are some people who don't believe in rents because it will take a lot of time for them to get the money that they use in building it.

However, i will prefer to rent it out because it is an investment that can generate profit from genertion to generation as long as you don't sell it. It can be passed on to your children.
Just like most members here have already said, it depends on the kind of real estate investor one is. Currently, the world's economy is not smiling and the prices of building materials keep increasing as the day goes by. The cost at which one builds an apartment will definitely not be the cost at which he will build that very design of apartment tomorrow because the price of materials and even labour will go up. If the investor calculates all the cost involved in building a house today and sells that particular house, chances are that he will spend even more building that same house again tomorrow. I am using the current economic situation in my country as a case study.

Except the investor just wants to sell off the house outrightly without any intention of rebuilding, I think renting out the building will generate more returns and is even more profitable than an outright sale.
legendary
Activity: 2086
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September 14, 2024, 03:19:19 PM
I also think building apartments for selling or for rental purpose can both be good ways to invest in real estate. And we know that selling apartments can make money for you quickly but renting can give in regular income. But before you decide keep in mind some points like where people want to live in area where apartments are and how much interest you will pay on loan. You also must have knowledge about local rules and how much it costs to build and what it will give after completing and how to manage property.

It is also good idea to do both works means build apartments or rent them out and then sell them when time is right and giving more profit. This can help you spread out risk and make more money.
Yeah, it all depends on the region, some are great places to buy and rent, some are not good for any purposes at all and should sell and get out. I personally believe that I would not do this in my country because selling makes a lot more money than renting, so renting makes no sense in my country, I would say house prices are far superior compared to small rent prices. You can get a house for over 200k, and rent it for 600-700 dollars, makes no sense to spend 200k for just monthly 700 dollar income, that's a stupid move.

But you can buy a land for about a million dollars, and spend half a million to build a whole apartment, and then sell each part for 200k, meaning that you can make as much as 4 million dollars from it. It's like that because it's a very big metropolitan area, meaning that finding that land is hard, whenever one is up for sale, someone gets it quickly. So basically, selling houses is better for me, but building and renting it out could be great for someone else.
STT
legendary
Activity: 4060
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September 14, 2024, 10:20:01 AM
In fact, by renting out an apartment, the investment profit can be obtained within 1-4 years, where I once asked a rental owner who had 6 residential doors, in 3 years the construction funds had been returned and the rest he got profit
I think it is better to rent it out than to sell it

In the right area and with all construction done by the owners themselves I can believe its extremely profitable at times.  Business should be more profitable then selling it as it involves greater risk.  The court cases relating to tenancy contracts can drag on for years and still cost thousands in both damage and lost rent even if found in your favor.

Under 10 years for a return is quite common even in a normal 'quiet' area presuming no surprises occur.   I know of a landlord who ran multiple occupancy short term letting and got back the entire house cost even though they had no money and loaned everything from a bank.  It was still a job to let out and manage the property and made money, not an easy job always.
hero member
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September 14, 2024, 09:42:21 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?
Real estate is an asset and it generates profit overtime making it worth to invest in. You can choose go sell it and still get a good amount of profit because the cost of building materials increases overtime. There are some people who don't believe in rents because it will take a lot of time for them to get the money that they use in building it.

However, i will prefer to rent it out because it is an investment that can generate profit from genertion to generation as long as you don't sell it. It can be passed on to your children.
legendary
Activity: 2898
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So anyway, I applied as a merit source :)
September 14, 2024, 09:08:22 AM
A property once built, needs to be rented out if you are not going to live there or have floors available, you could also sell it entirely or some floors eventually. It all depends on how close you are living and if you are having time to maintain that location because tenets will need your help if you rent it out.

Having rented ones means like bank deposits, you get some money every month and continue getting till the resident moves out or you need to maintain it. Selling means getting a major chunk back at one time.

It is a good investment but often generational and takes time if you dont have one already. But this should be in the portfolio of every other investor out there among traditional assets.
hero member
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Leading Crypto Sports Betting & Casino Platform
September 14, 2024, 08:04:08 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?

Well this is quite simple and understandable,so for recouping an investment I think either way of them is good to carry on with and it's possible to either sell or rent it out this Decisions it's up to you cause you know what best is comfortable with you so you won't have any regrets of such.
But if you ask me I'll say it's more profitable when you rent it out, because if not on some occasion yearly you get your dividends from it and you can tend to save it for the unforseen circumstances but selling it out is just an avenue that the property is out of your reach entirely and when you do so you don't get yearly income from it.and when you rent it out there's more chances of recovering it back than selling it.
hero member
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Leading Crypto Sports Betting & Casino Platform
September 14, 2024, 04:41:47 AM
Businessmen or serial investors who run a business in the Real Estate sector by building residential apartment buildings will get their money back by selling the building to another party for more than the money they have spent. Meanwhile, individual businessmen who utilize their land in strategic locations will make the building a long-term investment by renting it out. Both are equally profitable even though they have different business plans.
full member
Activity: 311
Merit: 189
Addicted to HoDLing!
September 14, 2024, 03:12:11 AM
Personally I think it would depend on your own goals and priorities.

If you want immediate money then just sell the property however you need to consider that you are risking selling the property when its value might not be much appreciated yet.

What I really like with renting is there’s regular income but it’s another headache trying to maintain the property and the renters. It is all up to you and what kind of character you have.
If they continue to give property to fulfill their needs, it is a loss for them.  If they continue to give property for their business, then this is the right way because with what they will earn, they will also meet their needs and build their property again. If they do it just for their own time now, they will feel fine, but later they will realize it.  Yes you have rightly said that when you can't pay for something, rent it, but it doesn't mean you rent everything, some essentials that will benefit you tomorrow.  can give  It's really hard if you do it for a long trip. If you make yourself stand in one position, you have an advantage. Yes, if they have character, they should follow these things.
sr. member
Activity: 812
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Free Crypto Faucet in Trustdice
September 14, 2024, 12:40:44 AM
Real estate will always profit in both renting and buying/selling. It depends on when the property was purchased, the purpose of its purchase, how lucky the realtor is in terms of negotiation and the value the property garnered over some period according to some factors which are not limited to the location.
And that's another way of circulating money for those who already have better funds financially. But, if I have more funds, I want to turn it around to trade items of goods that are basic daily necessities, such as rice, wheat, cooking oil or others.

Although the profit is small, there is a round every day, if in the property sector you have to spend a large amount of money at first, always wait for the right time and the right potential buyer.
That's a good plan, I like realistic thinking like you, the most appropriate way to keep money circulating is for basic needs, you will get profit every day even though in small amount with small risk percentage.
But I think for Property business is for those who have big capital with the aim of achieving big profit.
It must be remembered that all businesses that are run get profit that is worth it with initial capital and risk faced.
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