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Topic: Which is More Profitable? - page 6. (Read 2145 times)

hero member
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September 12, 2024, 06:09:41 PM
#92
In as much as I am concerned the most profitable way to recoup the investment made in building an apartment is by renting it, it will take you very long before recouping your money but it is more profitable than selling it. Because selling an apartment is like exchange of money and food between a buyer and a seller (food vendor). If the buyer consume the food everything will vanish, and he will have nothing to do with the seller again. But if you put the apartment on rent you will become a rentier and you will make a lot of profit that you will also rebuild another Residencial apartment and have a lot of renters and it will be more profitable. Hire a caretaker and a rent collector to free yourself from stress and tenant's problems.

Agree with your opinion, it is more profitable to rent apartments than to sell them one by one after we have finished building them, that way we can return the proceeds from renting the apartment by building a new apartment and then the proceeds from the new apartment are also the same and we can build another apartment from the proceeds. rent the first apartment, indeed from the proceeds from renting the apartment it is not easy to return the basic capital, but with the proceeds from renting the apartment we turn it over again by building a new apartment and then it will be collected into the main capital we build it, but not in the near future it will take a long time to The initial capital can be returned, that way our money doesn't die at one point, there are several points that we can make money from each month.

Without wasting much of our time deliberating on the matter I think it will take someone who is into real estate business to be able to give us a good explanation concerning this matter.

From my personal knowledge, selling a building after the construction gives more profit than renting it annually because it will take longer years to be able to make the capital used in the building project before the profit making while if the building is sold after the construction, the profit made can be used to start another project that will be ready for sales even before the proposed building for rent profit can be generated.

Not everyone is ready to wait for years to take profit of their rent it only takes someone who's interested in taking future profits to endure for years to make profit of his building project.
legendary
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September 12, 2024, 05:13:42 PM
#91
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?

It depends how much money we are talking about as seed capital and current market conditions. The smart money will try to put a mortgage on any property rather than paying the full amount up front, then get the tenants to pay for it themselves in the form of rent. If you were able to lock in a 3% mortgage for 10 years and it 3 years ago, as a property owner who rents out units, you would be making big bank from that now. You've probably raised rents substantially just because that's what the market conditions allow and your costs stay fixed for the foreseeable future. Selling a property will often result in a profit margin and it depends if you have any debt that you need to pay back, but people often specialize in one field or the other.
N.O
full member
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September 12, 2024, 03:02:38 PM
#90
You can always make more money renting than selling.   After all, you are providing a service.  If you are not interested in dealing with tenants, you can hire a rental agency to take care of everything for you.

In as much as I am concerned the most profitable way to recoup the investment made in building an apartment is by renting it, it will take you very long before recouping your money but it is more profitable than selling it. Because selling an apartment is like exchange of money and food between a buyer and a seller (food vendor). If the buyer consume the food everything will vanish, and he will have nothing to do with the seller again. But if you put the apartment on rent you will become a rentier and you will make a lot of profit that you will also rebuild another Residencial apartment and have a lot of renters and it will be more profitable. Hire a caretaker and a rent collector to free yourself from stress and tenant's problems.
I think both options are good but I matter a lot you are poor people, middle class people or rich people or very rich people. Every person has different priorities because they are facing different kind of situations .  If a person is poor and he has some money to invest, he should invest in rental apartment and if a person is middle class , he should also invest in rental properties and he should earn fare from tenant . If a person is  very rich person, he should invest his money in different assets , like he should buy and sell the property because that could be more beneficial for because he could make more profit from that .
full member
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September 12, 2024, 02:38:03 PM
#89
In as much as I am concerned the most profitable way to recoup the investment made in building an apartment is by renting it, it will take you very long before recouping your money but it is more profitable than selling it. Because selling an apartment is like exchange of money and food between a buyer and a seller (food vendor). If the buyer consume the food everything will vanish, and he will have nothing to do with the seller again. But if you put the apartment on rent you will become a rentier and you will make a lot of profit that you will also rebuild another Residencial apartment and have a lot of renters and it will be more profitable. Hire a caretaker and a rent collector to free yourself from stress and tenant's problems.

Agree with your opinion, it is more profitable to rent apartments than to sell them one by one after we have finished building them, that way we can return the proceeds from renting the apartment by building a new apartment and then the proceeds from the new apartment are also the same and we can build another apartment from the proceeds. rent the first apartment, indeed from the proceeds from renting the apartment it is not easy to return the basic capital, but with the proceeds from renting the apartment we turn it over again by building a new apartment and then it will be collected into the main capital we build it, but not in the near future it will take a long time to The initial capital can be returned, that way our money doesn't die at one point, there are several points that we can make money from each month.
hero member
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September 12, 2024, 09:43:50 AM
#88
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 this case it really depends on how much the house is needed or not in your area or how much real estate has good prospects for investment travel. I see a slight difference with both patterns where if the house is made to be rented out the prospect of returning money will be much longer because the house is rented out but this is good for investment support. While Real Estate is made to be resold and this really depends on how the house is traded because in my area people usually tie the Real Estate to a third party, namely the bank.

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.
newbie
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September 12, 2024, 06:32:31 AM
#87
I like both.  The income you will get from renting will come slowly i.e. it is a matter of long term. If you want instant profit then you must sell.
jr. member
Activity: 60
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September 12, 2024, 05:29:45 AM
#86
You can always make more money renting than selling.   After all, you are providing a service.  If you are not interested in dealing with tenants, you can hire a rental agency to take care of everything for you.

In as much as I am concerned the most profitable way to recoup the investment made in building an apartment is by renting it, it will take you very long before recouping your money but it is more profitable than selling it. Because selling an apartment is like exchange of money and food between a buyer and a seller (food vendor). If the buyer consume the food everything will vanish, and he will have nothing to do with the seller again. But if you put the apartment on rent you will become a rentier and you will make a lot of profit that you will also rebuild another Residencial apartment and have a lot of renters and it will be more profitable. Hire a caretaker and a rent collector to free yourself from stress and tenant's problems.
hero member
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July 30, 2024, 05:33:06 PM
#85
I don't know much, but as far as I know recouping investment through renting offers steady income and long-term gains, while selling provides a lump sum return based on market conditions. Renting is ideal for ongoing revenue, while selling is best for immediate recovery. Hope this helps.
it will be better for you as investor to receiving a fund from your investment through renting down selling off everything at at same time, in order to recover everything so I believe that every person have it home way of making money through it investment because an investor knows the best method of making money in it discipline likewise any other investor so I don't have much to say but rather to drop my own personal opinion if I was the one I would rather keep it for the option of renting instead of selling
hero member
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July 30, 2024, 05:16:38 PM
#84
You can always make more money renting than selling.   After all, you are providing a service.  If you are not interested in dealing with tenants, you can hire a rental agency to take care of everything for you.

Exactly, with the only difference that renting will extend the turnover period, while selling will get you paid here and now.
Usually it's easy to decide based on one simple difference. Can you make the money work now, or not?
If you, for instance, have an investment window that will expire in a year or two, you choose to sell. If all you need is money to build or fix another apartment, get a loan for that and do it with bank's money, while paying the loan by charging your tenants.
While it's a good option to take a loan and pay it monthly through the monthly rental, however you cannot assure that your apartment will always be occupied by your tenants as there are some time also that your apartment will be left vacant and so the monthly income will be pending. That's probably the reason why some chose to sell quickly their property once they find a good buyer at a fair price.
hero member
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Merit: 575
July 30, 2024, 04:55:54 PM
#83
It is quite interesting to find a non-bitcoin question here, but I guess that's what "economics" means, its related to economy so I guess it works. If you ask me, since I am a bitcoin investor, I would not invest into something for rent income, I would probably just sell them all and get bitcoin? Or even if you want to rent, you could just do that for long period of time, meaning you would get rent income and put it on bitcoin. But rent seems a bit slower, you would not be able to put much in for that long, so it would be smarter to sell it all, sell everything and get that money into bitcoin. Specially right now, I think we are on the verge of a bull run, so it would make more sense to put all the money into bitcoin right now.
hero member
Activity: 3052
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July 30, 2024, 04:13:58 PM
#82
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, I believe both are quite successful. I have never invested in building apartments before, but I have seen individuals around me invest in real estate. Many people believe that building a residential apartment and selling it is the greatest method to recover their investment. I know someone who does just that, he builds an apartment and then resells it, he has done it for many years and has recovered his investment. Every investment is based on your level of expertise and previous experience. Some individuals build an apartment and rent it out to recoup their investment. As a result, it is up to the individual to choose the option that they believe would give the highest profit.
I also believe that both can bring satisfying profits. But it also depends on how long or short the duration you set to regain the investment profits, otherwise if it means quick and immediate returns, I'll go for selling the apartment. However, if it costs highly price, it might take some time to find a sure and reliable buyer, so probably you can make others rent it out for the mean time  just to see some profits.
sr. member
Activity: 546
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July 30, 2024, 03:04:25 PM
#81
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, I believe both are quite successful. I have never invested in building apartments before, but I have seen individuals around me invest in real estate. Many people believe that building a residential apartment and selling it is the greatest method to recover their investment. I know someone who does just that, he builds an apartment and then resells it, he has done it for many years and has recovered his investment. Every investment is based on your level of expertise and previous experience. Some individuals build an apartment and rent it out to recoup their investment. As a result, it is up to the individual to choose the option that they believe would give the highest profit.
sr. member
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July 30, 2024, 01:48:16 PM
#80
Selling or renting is equally profitable but by selling the property after it is built, your money will return faster in the sense that you can turn the business around.

If I have capital in the property business, I will build in a strategic place with a busy location, say the city center, it will be better to rent it out than sell it, this is a long-term profitable business.

I have a friend with and several properties that he owns, he said it is more profitable to rent out than to sell not necessarily find a strategic place again.
sr. member
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July 30, 2024, 12:22:09 PM
#79
I think that selling apartment units is more profitable than renting them to tenants. The reason is because when developers design their buildings, they already have a calculation of how much capital and profits they will get when they successfully sell apartment units to buyers. And they can also get fresh money that can be turned back to pay debts or build another apartment to make more profits. That's as far as I know, because apartment developers in my country never rent out units to tenants, but they sell them straight away, then these buyers can choose to occupy it or rent it out.
However, perhaps the problem is that when developers sell apartment units, this means they may lose the stable income from renting apartment units, and they will only expect the apartment fees paid by buyers every month.
hero member
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July 30, 2024, 10:40:13 AM
#78
Renting out property can definitely give you a regular income flow coming in.  But you gotta think hard about stuff before jumping into it and  local housing prices, mortgage rates, your money plans - that all matters big time.  There is no one size fits all answer here.  Comes down to what works for you and where you are at in life.  Its a complex equation, and the best strategy often depends on individual circumstances.

honestly for the people that have property ready to rent, just rent it and find out, eventually we'll figure out the equation, sometime it's not as bad as we think renting property.

yes things can get messy since there are matter such as communication with tenant that can be highly stressful and mentally exhausting but we'll eventually get used to it.
renting as far as I know is quite stable and profitable business that there's reason why all those landlords keep buying more and more property to rent.
I myself think it seems better to rent it out than to sell it, because by renting it out of course we will have a consistent income at every payment time for the tenant and maybe this can last a long time. although indeed by selling it which may seem more profitable but it may not last long because we know when we have a lot of money there is always the temptation to spend it without good consideration. for example I have a housing that is ready to be occupied I will look for a tenant for the house because a stable income must be considered.

what you said is right, things can indeed be complicated even though renting it out does not mean there will be no problems because no one knows when problems will occur. but we ourselves have choices and must consider them very well and I think that has become a must for everyone. in my opinion people who think long term rent out something they own, because by renting it out it can make them get income that can be said to be long term.
legendary
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July 29, 2024, 05:13:17 PM
#77
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?

In real estate, I think profit lies in the mark-up.  Each item and service has mark-up.  This is also the reason why the main contractor can easily give the tasks to the subcontractor.  They don't only get a cheaper terms for services, they can also gain extra time to accept another construction deal.  This is if you are a real estate developer.  

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 will not only recover your investment, renting the house can also give you a long-term profit since houses are made to stand for decades of years let alone the rental price of a unit appreciates every year.

Whether to sell your unit or to rent it out to recover your money is your decision.  Both are a good way to recover money, but if you do not need an immediate fund, I think renting out the house is way better than selling the house.
member
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July 29, 2024, 05:12:30 PM
#76
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?

You should seek financing for your apartment building.  In the US its quiet easily done when well connected.
Outside the developed world it is quite different. And you depend more on the policial situation plus the existing society. Financing is possible but not as easy.   
STT
legendary
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July 29, 2024, 01:59:53 PM
#75
Renting is always the greater profit but also the larger amount of work arguably.   You have far more business risk in renting then a simple outright sale of the property, also you have to consider you will remain invested for an undetermined time in some markets it could be 20 years for a full cycle.

    Land and housing can lose value, if you have capital at risk its quite straightforward that the returns have to be higher just to justify that ongoing involvement.

I would choose renting if you have the choice, however for most people leaving capital unavailable in the property would not be suitable.  A large part would be your credit available and also the cost vs the yield obtained via renting.

  IF you can arbitrage a profit then why would you not, ideally your tenants are not cyclical in the economy but regular and reliable; an empty property is a bit of a disaster as I understand it.
sr. member
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July 29, 2024, 01:45:14 PM
#74
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 Summary everything you have listed has a great chances of generating profits, however with the economic growth of most places real estate is a very lucrative business to venture into because there are so much profit in it especially for those who focus on building houses and selling them to a client but however just as the name implies to go into that business requires a lot of capital on a very large quantity because those are the things that would guarantee your success, however there are also people who focus on buying lands and selling it when the price has gone very high because I have a friend who are into that business and she made a lot of money from the lands she bought seven years ago.
sr. member
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July 29, 2024, 12:59:19 PM
#73
There's probably no right universal answer to this question. Some countries have a huge rental crisis, so you won't have a problem renting the property out for a good price, and you won't have you worry about having clients. In other countries, the rent might be cheap, or perhaps it's just a rural area or something and people don't tend to rent there. In that case, waiting for the right moment to sell can be a better option. Also, if a person is in no rush, why not do both? One can rent it out for a while and return some funds this way, and then sell it at some point to get another profit boost.
I think that depends on the of opportunity. Sometime you have opportunity to sell the property at good price and you should sell tge residential property if you got good opportunity and you have great deal on the other side. Your mission should be grow your wealth,no matters you are getting fare from property or you are selling that. But I think getting fare in best option if you want stability and you have good residential property and you don't have to prepare for next tenant. If you are living in a big city then you will get more fare and from the fare you can buy next property from the fare because you can save it and you can place that money in the side.
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