Topic: Which is More Profitable? (Read 819 times)

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

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.

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.

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.

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.

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.

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.

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.

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.  


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.

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.   

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.

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.

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.

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.

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.

If they want to make money fast, they can sell it to the potential buyer but that will not easy to find the buyer especially in this situation whereas the economic situation is slow to be better. They can renting out the apartment for some term before they decide to sell it especially if they don't have potential buyer. That will gives them money for some period while they search the buyer who wants to buy the apartment building. That solution can be apply if they difficult to find the buyer and I see some people who have a residential or apartment choose to renting out their property for some time.

That gives them money and recovering the investment although slowly but they can sell it directly when they gets the potential buyer who wants to buy their property.

In fact, both methods can be equally profitable, it just depends on your goals and needs in making decisions. If you really need a lot of profit in a short time, maybe selling some of it could be your choice. However, if you really intend to earn passive income, it is better to rent it out. So it could be said that these two methods can get back the investment funds that you have made in the apartment investment, but it is up to you whether you want it in the long term or in the short term.

Because basically property investment is very profitable, even though the maintenance costs are also large, it is worth it because usually property prices will increase every year. Investing in property can change your future too, especially if you can also invest in bitcoin, that's even better.

Both will recover the future investment returns in time. Having an apartment is a very profitable business, so either you sell it immediately or make it a rental business, both will actually offer you great profits.

Now, the question is if you want the long term process of the faster one. Because if your goal is to create an instant profits so you can proceed to your next investment, then sell the property with a good price. Renting the property will only lengthen and prolong the accumulation of profits.

Exactly, it depends on how the investor itself would want to gain his profits, be it short term or long term. But nevertheless, both are still profitable but it only differs on time. One will make instant profits just by selling the real estate once he finds a good buyer, or if he chose the long term profitability, simply renting it out will serve a better option.

However, if the investor is in need of real quick money, selling the apartment would provide him quick huge returns. As long as he'll find a potential buyer, the transaction will be smooth and fast.

In the country I live in now, there are still many people who do the first option where they build a house and rent it out instead of building for resale at a relatively higher price. Although the second option still exists, if you look at the current conditions in my area, of course more people are building and renting it out because the benefits are much greater.  This is a natural thing here because seeing from the price of a place that is still quite cheap and a lot of people who still don't have their own place to live and prefer to rent, making the opportunity to take advantage by renting out a house will clearly become more lucrative.

But of course in this case it depends on where you also live because in the end this will determine which benefits have greater potential to be an option considering that different places or regions must also differ in people's thinking so that this will clearly affect business choices whether building houses for rent or building for resale at higher prices .

Now at least you made it clear for us that you prefer more selling than renting it out. I believe we all have different perspectives on that.  Selling would give you more satisfaction if your end goal is to make a huge profits on it. But if I were to asked, there's no wrong also with having an apartment for renting as long as you don't need the profits at an earliest time possible, since renting takes a lot of time before you will recover your capital and make consistent and sustainable profits.

YES.
My idea is not to make passive income initially. At least you cannot call it passive income until you have recovered all of the money spent on building the apartment. And like most real estate guys have adviced which is the same thing with what you have said, it will take many years to recover your initial investiment in building the apartment if you put it out for rent. Their recommendations are two-folds.

- if you are building to hand over the property to your kids and their kids then there is no problem putting out the property for rent.
- If you want your investment back in the shortest of time build and sell. You'll get both your investment and profit back and you can move unto your next building project.

Buy a land, build a residential property and then sell it for x amount looks small but it will take ages and trust me it needs skill and experience to sell especially real estate so if you have been already in the brokerage then you can consider doing it or else just better rent them and make passive income.

Meanwhile both are not great choices as an investor because the growth and ROI is too small compared to stocks or other volatile investment.

On a norms, both will be profitable it's just like long term and short term trading. Selling of the house would yield you a huge amount more than what it was built with in a short period of time. But then if you rent of the building and hold, it will yield you even more than that which you would have sold off. That because a building can stand for more than 5 years before needing a renovation. And upon renting, you will annually receive rent for that five years giving you a sure and reliable source of income for this period where you don't have to renovate. For me I'll go for rent.

With the property that has been built, of course it will cost a lot of money after all the residences are completed, the owner will definitely rent out because this is for the sustainability of future profits, if it's a matter of talking about turning capital, of course it takes a few years but after returning the capital back then you will get the benefits of rent that continue to flow every year.

Selling property, of course, you will get your investment capital back faster and can build other businesses because the turnover of money is faster too, it's just that these are two sides that have different benefits, everyone will definitely have that goal.

For me, I would rent rather than sell because that's what we have been thinking about for a long time and we will always get profit every year.

What is to be considered is the duration within which the investor in real estate wishes to recoup their investment.

If it is an investor who has invested in real estate and is expecting to get his profit really quickly, then selling off the apartments can be a very good way to do so. But if it's an investor who is seeking a sustainable and continuous stream of income and is not bothered about quick returns, renting for a period of time becomes the most appropriate choice for them.

Both can bring decent profits. If you want to have quick and instant profits, selling the property would be the best option, of course with the best price offer. However, if your goal is to establish a passive income for long term, renting the property would certainly give you what you aim for. Although it will also demand higher amount of maintenance, but in the end the passive income you will earn is definitely bigger than its maintenance amount. So it’s certainly a win-win for you.

Selling it will give the most profit out of it because you can lump sum the potential profit so that you can rollover it to the next investment without paying for maintenance cost for the building if you decided to rent it out for apartment.

But other people think for sustainability that’s why many preferred the long shot since they don’t want to take risk anymore for finding another opportunity to acquire or construct new building.

For me selling since I can use the money to other business that will generate more profit.

Everything lies on you. It's just like trading of bitcoin vs buying bitcoin and HODl. Those who build apartment and sale instantly are like bitcoin traders, while those that built and rent out their apartment for long time are like bitcoin HODLers, so you can answer the questions yourself from my explanation. For me I prefer building and renting it out as a form of business to generate a passive income or annual income and it can be invested in bitcoin as lump sum annually and it becomes you retirement savings. One important thing you should know is that not everyone that has money to build house and sell to recoup their Money, although according to your statement It talk about those who are into real estate and such is only for multi millionaire and not for all. If such person has that amount to build and sell it's fine, but if he doesn't have that much, he can just build for rent to recoup his money.

Basically, it's more profitable to rent it out. But the ROI will only start flowing in after several years. If you include the piece of land, it will take more years for you to start receiving returns. However, that's going to be passive and steady income. If you prefer money that you don't work for day in and day out and continuously every month, it's the better choice. This is my cup of tea.

Selling is one time. You won't get regular profit from it. But if you prefer quick profit, it's going to be the better choice. Let's say you build an apartment for 6 months, you can get back everything that you spent plus a nice profit as quickly as the 7th month. But there's no more profit after that. I don't like this.

There's going to be a third option, better than the other two, the kind of business that some of the richest in my country are involved in. It's constantly rolling the money. You build and sell and use the money to build again and then sell and then look for another land to build on and sell again and so on. That requires commitment, however. It involves bigger tasks. This isn't the kind of business that a lazy man like me wants.

That will depend on you, if you want to recover capital quickly and have another business idea, selling is the solution, but if you want to create a passive income source, renting is the choice. 

If it were me, I would lean towards generating passive income by renting as it will be beneficial in the long run as you can both increase your income and increase the value of your real estate over time. Not to mention buying real estate with a good location is not easy, so you need to consider carefully before selling. Selling real estate is easy, but buying land with a similar geographical location or potential is not easy.

I agree, 100%.
While it looks like someone is able to make a profit margin from selling it. But it's not always easy to dispose a property and have your margins, location is still the biggest factor there. And with that case, you look at the real estate moguls, they're not going to sell their properties if they're in the prime location. They make their properties as their personal slave and make their money for them and for the next generation of their families.

With the apps like airbnb today and any other similar services, you're not going to be problematic with the clients. All you have to do is just be active on every platforms where you can post that property or apartment of yours. I've got friends that even bought units and apartments and have it rented through airbnb. This is how you earn while sleeping as W.Buffett said.

A real estate management have different ways of making or recovering any money they spent for real estate, sometimes they purchase their landed property at affordable prices and if they decide not to build any structure in that particular land they will create roads and start selling the lands at high price, secondly if they build structure like houses in their real estate they can decide to sell the houses apartment by apartment, but only ways I know that real estate make profit is by selling of land instead of building houses for rents.

I think both are profitable and it depends on what you're looking for. The prices of both depends on a lot of things which include the location of the building, the type of building and how much furnishing you have done in the building.
Giving out a house for rent is like investing for the long term. You'll always have a source of income even till old age, all you have to do is keep renovating the building and keeping it attractive for more potential tenants.
With selling the property, you can get the whole money spent to build and finish the house and your profit, but it's not q continuous payment.

In my opinion, the rent is better because even after death, your next of kin inherits it and continues to get profit out of it.
Selling the building gives your profit faster but renting is a better security, plus, the rents might increase the more the cost of living increases and it also increases with the value of the currency.

Do you know you can sell that property and then think of building another one in the next two years and you get to find out that it will take you times 2 of the money spent on building that first one to make this new one? Unless there are so many properties that were built then you can think of selling them gradually before one or two years you have gained enough from it.

Any day I'd prefer renting. Try equating renting to be a long-term bitcoin investment and then selling to be trading. Which do you think has more potential return? Renting an apartment can last for a lifetime, only just maintenance will go on and you can still choose to sell it if you want.

Now let me just trying my best with my small experience then, let me start with renting; in Renting the profits minimal like it doesn't have a stable and sound profits, reason is that in rentage when you spent a total amount of 50M to construct a building after which placed it on rentage it could cost you a total of 20-30 years to cover the cost spent in that building depending on the amount fixed at annually / Quarterly (Monthly/yearly), maybe it could around 500k per apartment then multiple by total apartment in that building, let say 5 apartment... 500,000 x 5 equal to 2,500,000 per year, then we subject it to the total amount spent in constructing the building.. 50,000,000 / 2,500,000 = 20.

Meaning it would take you 20 years to recover the amount spent in constructing a building with 5 apartment, after which your profits continues and it's a lifetime investment, but this depending on your age. If you are already 50 year old when you have that building, before you recover the amount it could cost you a total of 70 years which you are already weak (50 age + 20 years). So the investment is for your children and not yours.

Now, selling a building, if you spent 50m in that build you may decides to sell it at 70m-100m meaning you made your profits instantly without having to wait for lifetime to recover your profits, and off course you can always construct another building to sell, maybe within 20 years of your life have succeeded making 30m x 20 =600m within 20 years.

In Summary selling a building is more profitable than rentage.
I don't know if this is actually what you mean or not

I'm struggling to understand your question but I assume what you mean is build and sell? But if you mean that it is, then I can assume that this is more profitable since you can immediately get the capital and the profit you spent once you successfully got a buyer and this is really profitable business if you plan to do it since for sure there are lots of people seeking to buy their brand new home especially if you do it on places where good developments happening.

Unlike on renting where it will take a lot of years before you get your capital and you can only got from that option is passive income which your apartments could generate.

If you want passive then go with rental properties option. But if you want to hit more bigger market then do build and sell since there would be a chance that your business in this model will grow more bigger. But you need huge capital with this.

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.

The profit lies within your expertise actually since selling or renting buildings have different skills, connections, strategies, etc. If you want to sell, you should have access to wealthy people or with financing party, but if you want to do rental business, you should be able to deal with maintenance and other stuff related to tenant management. Anyways, let's say if you have money and build/buy some properties for "investment," IMO just sell it since renting means more work to do. The rental agency suggested by @Vod might be a good idea, but I don't have any experience dealing with them.

If you ask Which is More Profitable from the investment made in building a residential apartment building, then both are mutually beneficial. Investors have made considerations before turning their money into an apartment building, of course profit is their main target.
You can sell it immediately when the apartment is ready to live in, then look for another strategic location to build a new building. If you want to make a profit in the long term, renting it out will be the most valuable investment for your old age. Apart from being able to get consistent results every month, the price will also increase in the future.

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.

I'm not expert on this, but logic might tell that it's better to just rent it out, as least you have passive income for as long as you are alive. And it could create more money to you and for generations, hence generational wealth.

And maybe in just about 2-4 years of having it rented, you might have recoup already and then again, what's next in the next decade or so will be your profit for you and your family. Doesn't make sense to sell it unless you are in the business of flipping house for profits. But if you are a investors then for me, just rent it out will be the best option.

Anyone can be profitable. It all depends on your business plans, the location, and the offer you get from prospective buyers. If you intend to spread your profit for a long period, renting the apartment will be the best. But selling it outright will bring instant profit. If the building is located in a highly sort area or where rents are high, renting it will bring more returns than selling. Areas with a high population of tourists will bring more profit from renting than instant sales.

There are cases when a rich individual or organization offers so much money for a property. I have seen a politician offer property owners around his house huge amount for their properties because he wants to expand his estate. In such a case, outright sale might be the most profitable option.

First, what your plans are? are you a build-to-sell guy or you have built that apartment for you to have it as a rental property and earn a passive income? If the area is good then I'm not going to sell it. I'll use it for as long as I can and until I have it passed onto to my offspring just to have it rented and earn passively from it. But with that option, it is going to take a while before you ROI. Compared to building and selling it, you'll have it back in a shorter period. So, get back to the first question, what you really are and what's your plan?

First of all, am not a financial advisor i will only share my thoughts to the best of my knowledge here

In a scenario where you build an apartment and wish to recoup your money back. Renting is one way but just know it is a slow process. But it is in an environment or city where the value of property keeps climbing (price of rent). Then ill think it will be the best way because it will come to a time where in just a year you will get the money back used in constructing the apartment. Selling is another way, but it is a quick way, you instantly get your profit once you sell it.

However, the final all depends on you. If you want a long-term financial stream of money, then go for long term as the property will remain till the day you choose to sell it. I would any day prefer renting it out than selling it asap.

Both are definitely profitable and depends on the the kind of investor you’re, Selling of the apartment will definitely bring you the immediate profits you want, and also the rental proceedings will also brings it own profit but it definitely takes a lot of time and also needs extra work. If you ask me i will say the rental is even more profitable over a long period of time if at all the owner pays better attention to maximum maintenance of the property. A quick sale has its profit also but it is minimal although doesn’t requires extra work or waiting for long before realizing your profits.

If you’re just a serial investor building and selling is the best option to me but if you’re not and you’re looking for an investment with annually income then the rental way is much better. But both are profitable

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?