Topic: Which is More Profitable? - page 8. (Read 2145 times)

Real estate investment is considered a safe, highly profitable type of investment that can even generate passive income in a sustainable way, but its disadvantage is that it requires a large amount of money to get started.
Real estate is everyone's dream property but there are also some people who say they don't like investing or owning real estate. But I believe it's not that they don't like it, it's that they don't have enough capital to start.

Of course, any type of investment will bring profits but the profits will not be the same. Therefore, depending on our preferences and the amount of capital we have, we can make suitable choices for ourselves. Most people choose cryptocurrency instead of gold or real estate because they do not have large capital and are willing to accept risks in search of high profits...

I actually never involved directly with real estate investment but if I watch titktok youtube and other social media there are bunch of rich person that made ton of money from real estate but i think this kind of investment need a lot of money to start. 

And if you ask Which is More Profitable? Any kind of legal business can make decent of money in my opinion. Even in crypto you can make a lot from it.

A property that is situated in a nice neighbourhood is a hot cake. Once it is in the hands of realtors, they'll sell it in a heart bit because that is their job. Even the price will not matter because the realtor will work with the property owner to set a price that everyone will be happy with. Even the realtor will be motivated to sell it because it is a nice property in a choice location.

This could be a another type of passive income. If the property owner builds three properties in a year and sell them off for profit. Isn't this passive income? It is. Another type of this is when the person doesn't build but buys and filps them. It entails, building the property, making upgrades or renovations and then selling it off to a buyer at a higher price and making both capital and profit and then repeating the process all over again.  It is capital intensive, and so is the profit margin.

Yes and I think this is something that is quite easy to choose, but of course everyone has different choices depending on their desires and needs. I am sure that everyone definitely wants a profit amount that is much greater than the minimum in any case.

This means that of course renting out is the best idea to get a larger amount of profit in the long term, but perhaps not everyone is really willing to be patient for that long, and there is also the possibility that several factors influence the situation, in the sense that even if someone wants a large amount of profit, for example bigger but on the other hand they need money urgently so of course if there is nothing else that can be relied on to solve the problem then the choice is to sell it early.

So it doesn't only depend on desires but also on the situation and conditions, but if for example they don't experience any problems in their life related to finances then of course renting it out is much better to generate bigger profits on an ongoing basis.

But the main question on here is that, how fast you would really be able to sell out a land or property? specially if we do speak about huge amount then it would really be that definitely be hard to sell it out.
One of the main targets or goals that we do have in mind is to have that sustainable passive income on which it doesnt matter on what type or kind as long it does give out that kind of opportunity for you to have that passive income then its considered good. We do have our own ways on how we do handle up our investment, whether you would really be focusing into those expensive but could give out passive or inro those cheap
and could give that easy profits but there's no guarantee or assurance? Risks management will really be that crucial into this aspect on which each person does have their own level of tolerance.

We are all thriving for a better life and this is why on the time or moment that we've seen opportunities or chances then of course we would really be diving on it no matter what. This is why it would
really be that understandable that you should really be that making yourself having this engagement on whatever things that brings out profits.

Both are profitable methods depending on the price of the apartment or the rental costs for the apartment. However, both are profitable, and I think many people do both. The first one will get big profits but only once, so the investor needs to think about the next promising business. The second may take time, and may result in long-term profits when the capital is returned. However, this requires time and care. However, they all have advantages and disadvantages.

Building an apartment and renting it out is not going to yield a fast profit compared to the initial profits one is going to make by selling the land. Most of these real estate managers knows how to make there own money and it is mostly by building and selling it out immediately. This would yield more profits which can be put in developing other location and making sure that more buildings are being built so they can be sold as soon as possible. There is not much profits in building a house and renting it out. This is going to take time even before the person is able to generate their own money from such an investment.

Depending on the place and depending on the conditions I think for this because when talking about profit it seems like there are several factors that we really need to see as an opportunity whether renting or reselling a house that has been built will be more profitable or not.
But for me, now I think I will choose to build a house and rent it out if only those 2 options have to be chosen. Not without reason, because indeed for the area I live in today it is very difficult to see people owning a house with their own property rights so that more people rent because indeed the price of land and making buildings is not cheap.

By looking at the opportunity, it is clear that if there is enough capital to build several houses for rent every month, it will be a good condition for now because this is clearly for the longer term, besides that if in the end we cannot see this opportunity, we can still resell the house we have when the tenant is no longer there.

The only way to get your profit back from real estate is by renting or sealing it based on profit, although we all know that real estate is one of the biggest risks to invest in because many things can happen that can increase your chances of losing, so to me, I think you will have a better profit on real estate by just selling it as a spot when you have the profit that you wanted or even a considerable profit because if you are to give rent, either you collect the money monthly or annually.
 
And again, you have to still maintain the property, which might cause you more loss than give you more profit. That is why, in many cases, I always prefer doing things without wasting time to avoid failure and regret. That is my own view on real estate, although I have never invested in it, but I have a bit of knowledge about how the investment works.

It actually depends on your own preference. If you want to make it an instant, and see your ROI within days or months, you need to sell the property. But if you are not in rush of having huge profits, and a monthly and sustainable profits is enough for you, simply renting out the property is a good option. You chose which will satisfy you most. The important thing is, you will never end up selling at a loss, otherwise you should just focus on seeing it as a monthly rental business but expect to regain your capital and profits for quite long years.

Yeah, but it's just that one is longer to get the full amounts and the other is like an instant. I say like only because selling a property still needs some time for processing the documents and other stuffs. I forgot that renting it out can also be called as a passive income. Thanks for saying it. I think many people prefer this and think it was better because they can make money on their sleep or whatever they do even if they are on a vacation.

Another good thing about it, is that our total earnings for a lifetime can be much better than if we sell, create and sell again because we are only using a one property here continuously. It may need some maintenance but the costing of it is only small compared to when starting from scratch. Not just property but basically each investments are mainly built to secure someone else future. It's just that people can sometimes be impatient and naive to pick up the wrong asset choice.

In investing, diversifying is important in order for us to cut risk and it might as well benefit us more. Bitcoin is indeed a good asset that we can add. The good thing about Bitcoin is that it can also work for the short-term through trading. Of course, we can't trade it alone but we need to pair it with something else. There are still legit assets next to it though, so no worries.

To be honest, renting is the best benefit in this industry, because we will always get a deposit every month, but the risk is that the maintenance costs are also a bit expensive.

Renting out is also one of the benefits, it can also get long-term benefits even though we have sold it because electricity and water as well as facilities such as other food in the apartment environment are side investments that will definitely be used by residents and tenants and that will be the wheel of profit for real estate entrepreneurs.

If you ask me, I will say the selling it out is the best and safe for your capital. Imagine building an estate large to accommodate people, you did everything and put everything in order and then rent it out for people to have. There is no way you are going to get all people to rent those buildings at the same time, if you are lucky they get filled up quickly and if you are not, it will b gradually and that will make your money to be slow before you get back your investment.

Secondly, constructing and selling out means you are some for that deal and you see your profit quickly but when you rent out, you will be the cost of maintenance and other miscellaneous spending later in the future. This might take extra years 10-20 years before you make back that money. The only advantage this might give is that you can later sell out the property and the land after some years but this isn't the best way to make money in Real estate business, just construct and sell quickly for people.

There is no single correct answer to this, as it depends on thousands, if not millions of different parameters that are constantly changing. Most people will evolve their own unique strategies over time and seek to capitalize on a certain method, builders often have no interest in renting out the end property because their trade is construction and that's what they are good at. Real estate companies with a property portfolio might have good connections with builders, if only because they need maintenance skills, but are usually focusing their time purely on managing and adding to their existing properties without getting involved in building. What they do both need is to be delivering at an affordable price for the local market they are focusing on, because some people jump in and ignore that key fact.

It also depends on what you want to do later on as well. Are you planning on growing even bigger, or are you planning on considering that as your retirement? If you think that having that and renting it out would give you enough money to never work again and just retire and not need money, then you could just rent them out, sit at home, sip some tea and chill.

That way you would be a retired person, and can even do this at a very young age, so you would have a whole life ahead of you to relax, I have a friend at 38 years old who does this, has a building, rents it out, and doesn't work a single day in his life, only spends time playing games, taking care of his kid and enjoys life.

Whereas, if you want to grow, you could sell it to make some profit, buy another land, build another, and keep doing that until you feel like you have enough money, or do it until you can't anymore. That way, you will not retire, but you will "try" to be richer with that option. That is why I honestly believe that we should first know what our goal is afterwards.

If you know your goal afterwards, you could always pick easier, and also if you decide that you picked the wrong one then you can always switch back to other option later on.

In my opinion, both can actually be profitable, when you sell it means you immediately get back the money you have spent on building the apartment building along with a number of benefits, while when you choose to rent it out to someone else there is an opportunity for You can get a bigger profit compared to selling it directly to someone else.

The difference here is only in terms of time, because of course the cost of building an apartment is not small, meaning that when you choose to rent out rather than sell it means you have to be patient to wait several years or maybe decades until all your capital money is returned, and after Only then will you get real profits from renting out the apartment when all your capital money has been returned, and also if you rent out the apartment for longer then of course your profits can also be bigger, in the sense that renting out is an idea for getting long-term profits compared to selling it. , but I understand that not everyone is really able to be patient for that long, and if the choice is which is better, selling or renting, of course it depends on your choice.

If you consider all the costs of maintaining the property in good condition while renting and compare what you can get for selling this property, there may be a clear indicator of profit or not. I know that when renting, the landlord takes all the trouble for the working condition of the housing in my country, and the tenants sometimes drive apartments to the point of disgrace, which takes a very long time to restore. But yes, if you are picky about renting and renting out housing to normal clients, then passive income will be more profitable for renting, and it is natural that at some point the housing can be sold.

Profitable depends on the location.

if there are very few tenants around the region of your property then maybe selling it is a good way to make profit, but if there are many industrial complex, offices and so on around your building then you can always get that long term profit and passive income and mitigate the risk because as far as I know, selling property isn't like flipping your hand, it's so hard with the people's average salary becoming less and less capable to afford current housing prices.

definitely try to take a look at the average salary of that region, average housing prices, and average renting price, it'll be a good insight to make decision on this.

I think renting it out or selling it is the same, it all depends on our desire to return the capital, whether we want it quickly or slowly, but there are advantages and disadvantages to each.
We can sell it to get back capital and profits so we can do the same thing in other places to get more profits and renting it out can become our fixed asset for the future and create a fixed asset for ourselves, so that's the same profit we get. It all depends on our individual choices.

As you have been told, both can be profitable. But I would qualify that they have to be profitable, at least on paper, otherwise you are doing something wrong.

As you say, if you sell all the flats what you are doing is recovering the money you owe the bank (because I assume you are going to ask for a mortgage) and the profit faster. If you rent them out you will owe money for longer, you will have more headaches with the tenants but you will have a monthly cash flow and at the same time the property will tend to appreciate in value over the years.

But here is the thing: the builders where I live do it in a mixed way: they sell most of the flats to recover what they owe the bank and make a quick profit but they keep a few flats and above all the commercial ground floor flats to rent them out. That way you can have your cake and eat it too.