Buy to invest: how to make money in real estate?

Investing in stone has been an excellent investment, and still is, especially in London and the south-east of the country, where many people buy detached homes without seeing them (especially those who buy from abroad). Visit www.for-sale.com for more information about flats for sale in the UK.

In fact, many people buy in advance, before construction (at that time we usually get 5 to 10% off) and sell before the house is over, its back to back sales or you can make profits without actually paying for the property. In recent years, these purchases have far outstripped the stock market as well as all savings systems in terms of profitability, and provided both an increase in capital and income (if you rent). A sort of rule that comes from the observations of the past years shows that a house doubles its value every seven years and in some parts of the country, every three to four years, without you having to make any modifications or improvements specific.

In some areas investors have dramatically raised prices – in the early 2000s two-thirds of the homes that were bought in London were for investing! In the fall of 2004 the market was stable or declining and many small investors were trying to sell, even though the big investors were still buying. The majority of market analysts (including the IMF) have predicted that this price increase will stop sharply and even drop significantly in the next five years.

Decide to invest in real estate

A real estate investment must be considered over the medium or long term, i.e. a minimum of 5 years and preferably a period of 10 to 25 years. Keep in mind that a property is not always ‘as safe as house’ (note: British phrase literally means ‘as safe as a house’, that means it cannot happen to you, it’s British humor) and these investments can be risky in the short or medium term – unless you get a good reduction or a quick price increase. When you buy a property, you need to get a good discount that allows you in case of problems to be able to sell the house quickly. Also consider the income tax if you rent, income tax and capital gains tax if you sell a second home or an investment property.

There are several types of property investment. Your home is an investment (and should be considered as such in addition to a place to live). It will allow you to have a home without rent and you can even make a profit by selling it. In the last 10 – 20 years riding on the property ladder, has made tens of thousands of millionaires, just by playing well and winning.

Tip: For those who want to live in a house for a long enough time, buy will be cheaper in addition to being an investment! Do not forget that it’s important to keep an eye on the resale potential of a house as you never know what tomorrow will be like.

Will it be easy to sell at the moment – if it is it is an excellent investment? If you think you have made a big profit on your home, it may be difficult to achieve unless you decide to move to another area or change to a smaller one.

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