Topic: Which is More Profitable? - page 7. (Read 2145 times)

Anyone who tells you A is better than B, and leave it at that, doesn't know what they are talking about.  There are simply so many factors that go in to play here it entirely depends. How much was spent, how much would you get in rent/how many units/what are the leasing terms/how much in taxes and on and on and on.  Also location is of course massive, in one part of the US all things being equal selling might make more sense, but at another part of the US say just 100 miles away, renting would make way more sense.  There's just no black and white answer here.

I'd say there is profit in both ventures, however, it depends on how soon you can get the profits. If you sell the real estate outright, you can instant profit and can recoup your initial capital but with rental, it would take a lot longer to even get back your capital, more than a decade actually if you begin to factor in repairs and renovations but the biggest advantage it has vs outright selling is the fact that when you recoup the capital, you can earn profits for many years, possibly a life time.

Renting gives cashflow while selling gives capital gain and since I'm a big fan of cashflow and how profitable this mode of receiving profit can be I'll have to say cashflow. Renting gives more profits as you go down the years but selling gives a fast profits that can be used to buy more properties, renovate and sell again. The profitability can differs depending on the people involved, there are some people that renting would be more profitable to while there are others selling will be more profitable to because of their contacts (people they know). Some relators are good at marketing their building and they get buyers that pays in full then they can repeat this again and again. If you don't have that connection, you shouldn't be selling but renting that give you profit without much efforts (more like hodling Bitcoin).

Renting also leaves you with the ownership of the building and you can sell later to make profits. Everything then rely on the location your building is located because that'll determine if you can sell the business in the future for profits because the area has appreciated in value and more people want to leave in the environment where the building is located.

Renting would be generating bigger amount in the long run and not to mention that you will still have ownership of the apartment. Downside is not getting the money in an instant but rather, years of rent from the tenants. I do view it as perhaps 10years of sacrifice of getting the ROI from the amount you used for construction and after that, it will all be profit and that's for a lifetime of a passive income. Well, selling it as a property will give you a faster profit from the amount you used, it will also allow you to build another one. Actually both are profitable for sure however, it depends on how would you prefer things when it comes on return of investment. If you're patient enough of things then renting it out is best but if you're the aggressive type of investor then basically, selling it will be best.

This is the most complete answer. Although real estate is a potential investment field, it will depend on the situation of each country and each region and will have different needs for real estate. If OP is in a war zone, renting is not really feasible in this case, selling would be more beneficial. None of us here know what the situation is like where OP lives, what the demand for real estate is like there, so only he knows what is the best choice for him.

But if I were him and in my country, I would also make the choice that many people choose, which is to rent rather than sell because in the long run, it will bring better profits.

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.

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.

If there's enough demand of buyers to purchase that apartment for higher amount then what was spent during the construction of the building then surely it's going to recover the cost of building and gives some profit to the owner of the apartment. However, if the buyers want to acquire the apartment for cheap rates then in such case renting could be helpful as the owner can sell the property later when buyers demand for it increases.

This should be an initial consideration because after all when we look at business opportunities sometimes we have to look from several angles not just focusing from one point of view.
I agree with what you said where in the end even if renting out a house will have a pretty good impact on monthly or annual income but in the end we also have to realize that in the end things like this must also be seen several supporting factors such as prices and the situation that occurs in our environment in the end.
If it is indeed favorable for renting then it will be more worth it if in the end we do this business where renting out houses apart from us who remain the property rights of the houses we rent out, we also get monthly or annual income according to the rental contract, but when it is not very profitable because of several factors such as the price of houses that are still affordable and the habits of people who do not like to rent then it would be better to sell directly is also a good option because in the end the business always depends on the conditions in the market environment.

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.

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.

There is no problem if the apartment is rented out and it is better if it is sold outright. However, the status of one's investment ability will be a key factor in taking such a decision. If I am a big investor then I can pay rent but if I am not then I have to sell because with that sale money I will be able to make new investments again. If one does this kind of business then definitely his investment amount will be very high. But in my opinion I will try to sell it outright rather than rent it. Because if I sell outright then later on I can buy another apartment and from there I will be able to withdraw my profit which can never be obtained by renting. Apart from that, I am also responsible for the apartment rent. It must be difficult to sustain that business with my rent as a real estate dealer.

On getting back your investment quick, selling it out at once will pays with immediate effect, but if you wants to get the best profit in your investment, I think renting out the apartment will be more preferable.
With rate of inflation growing globally, the cost of everything is increasing by some huge percentage that have made life difficult for people, only people who already have good investments are making good money, and as such, building house has been a complex thing to livelihood, people prefer to rent an apartment than securing one for themselves due to the cost, this means that renting price will keep going high.
Therefore, if you give your apartments out on rent, you will continuously be benefiting from it every year, and the cost maintenance will not that much if you invested and use good materials to build your apartments.

In my opinion, selling the apartment would be a better option, because if you want to recover it by renting it out, it will take a long time to recover your invested money, and you will get a profit from then on. But if you decide to sell the apartment you might get less profit, but you will get both your invested money and profit together. And immediately you can start another job again, besides as a builder you always have cash with you.

I observe the question from the OP that of the two options, the most suitable to be implemented is the rental option. Because besides being able to continue to flow profits in the long term for ourselves as long as there are still those who rent it for a long period of time, it is also much better than selling it directly for a profit that we only reap once. Because when selling it directly, we definitely have to build it again in order to get more profits in the future, while if we rent it to someone else, the flow of money will continue to come to us as long as they continue to extend the lease at a cost that we have previously determined.

In the long run, leasing will have more benefits than selling immediately after construction is completed. Not only will renting create a passive income cash flow, but our real estate prices will also increase over time. This means we only need to invest once to create passive income and bring more profits because the demand for real estate will always increase. Because of these benefits, investing in real estate is always considered the best investment.

Personally, I also think there is no reason we have to sell our real estate for the benefit it brings unless we have a lot of real estate or need money urgently.

Yes, that's right. I also agree with you, actually both can be profitable, it just depends on the person in making the decision. If asked how quickly it can be profitable, of course selling is the fastest way. However, if asked about the big profit, of course by renting, although the return on investment is slow, but the apartment will be more expensive every year. Because property is also a very potential investment for the long term, especially if the location is strategic.

My choice is also like yours, I prefer to rent rather than sell because this will give us passive income. If we have many apartments, it is even better in terms of passive income, we can set aside money for bitcoin investment with the dca method so that indirectly, besides having passive income, we also have long-term investment.

It really depends on what someone's after. Buying or building and then selling immediately is probably the quickest way to recover your initial investment and your profit margin. Renting, on the other hand, provides you with a steady flow of passive income. If you buy a few properties with a mortgage, you're likely to earn a lot more on rent than the monthly payment.

I'd personally opt for renting; it's a long-term passive income that ensures you'll always have money by the end of the month, especially nowadays with the current real estate situation.

Its possible to recover back the investment fund on it, but that is why it is deemed fit to be one of the most lucrative physical investment people can go for, because when you invest on real estate, you don't get the return from your investment immediately, instead you build back your investment fun steadily over time with patience, till after some years, when you would have seen that the investment fund raised on this asset have been fully recovered, then the entire asset could be your profit and you can as well transfer this to your children.

I think the most important thing to get profit is not whether you sell or rent your apartment or building but your location. If you build a house in a good location, you will rent it, then in a few years, you will get back the invested amount and you will also have your own house. You will also get your money back and after some time you will start making a profit, if your house is in a good location and is selling at a high price, you will get double your invested money. If you are getting it, you should sell it so that you can buy two properties instead of one.

When it comes to renting out a house, many other things need to be looked at, such as renters not taking care of the house in the same way that a landlord can, apart from when the house is renovated. There is a big difference between this and a ready-made house, the price drops, so even if you sell a ready-to-move house, you can get a good price for it, but once the house is used and you sell it, you don't get a good price for it.

So all these things have to be seen. Becoming a property dealer is not easy. You can become a successful dealer only if you know how to make the right decisions. You understand the value of your location. They should also be rented out rather than sold as their value doubles and triples over time.