Investment, goodwill and profitability in real estate business.
These terms can be appreciated significantly in Real Estate and in commercial businesses: EVERYTHING DEPENDS ON ITS CORRECT ADMINISTRATION.
However, real estate has the peculiarity of "working" for one if you decide to invest in real estate, because of their unique characteristics: they allow us legal security of belonging, are a smart investment if we observe some general rules (see below), give certainty as collateral in the granting of loans (mortgages) and allow the natural growth demanded by a mercantile business to obtain immediate liquidity for new capital investments, maintain value over the course of time while retaining future purchasing power, produce additional rents ranging from 0.4% to 2.0% per month, depending on their characteristics of use and exploitation, allows to create assets that can be inherited to many future generations among other characteristics.
We just have to remember that capital investments as in real estate, should be considered in the LONG TERM, generally from five years onwards to think in the range of very profitable and depending on other factors; there is a bad concept that "investing in real estate is a bad decision and bad business" because it is speculated on the values of the properties in the short term and do not take into account the time periods to realize them for sale, which fluctuate from 3 to 6 months at least even if it is "opportunities"; this causes the investor's despair because the rapid recovery in their cash flow does not manifest, thinking that it will gain an added value in the very short term ( less than 6 months). And worse, when the property was acquired at a higher value than the market known as "overcharge", because in that case, it may not be sold in a year.
Of course there are other investment options that are equally attractive according to how they are seen, with the difference that you have to take into account the "risk" factor, since in the jargon of investments there is a law that says: "The greater Profitability, greater risk of loss ", so we can talk about stock market investments (which compete in the stock market), which are carried out in the long term and can surpass any other options available in the investment market, But equally, we expose ourselves to lose all our capital with a bad decision that we make if we do not know in depth the projections and tendencies of securitization.
It is generally recommended to consult a specialist (real estate broker expert) to achieve the best results that we expect. Given the uncertainty in the stock markets, volatility in the world economy and interest rates at historical lows, participation in real estate assets is the best option at this point in time.
Finally, the idea is that our money works for us and that in the race of inflation and the internal rates of return of these investments, a balance is maintained that favors us in the course of time in which they compete. Why is inflation so important? Because as it rises upward, our purchasing power deteriorates if we are not careful to put that capital to work to give it an added value greater than that of inflation in a given period.
Let’s say you have 1000 monetary units (MU) at the beginning of the year and are stored under the mattress and the inflation of that reference year is 8%, it means that what at the beginning of the year cost 1000 MU, at the end of the year will cost 1080 MU, so our 1000 UM that we keep on the mattress will no longer reach us to buy the same goods and services as at the beginning of the year; which impoverished that money, which was eaten by 8%, because now, at the end of the year is worth only (1000 - 80 = 920) 920 MU.
Smart investments should provide us with: Security, Solidity, Durability, Profitability and Tangibility, as they are the most sought after by successful investors. Let's say that the differences between investing in real estate, fixed income (government bonds), equities (equity securities), or investments in assets of the business itself, should be determined by: investment terms (from 3 to more than 5 years), Risk, cash availability and performance.
So how can we make the right decision if we want to invest in real estate? A land, a house, a store, a warehouse or a building are a good investment as all the instruments when they are part of a diversified portfolio and when the profile of the investor goes according to what implies investing in real estate. We must understand that not anyone can make investments of this nature for the amounts that are considerable, so young people who start their productive activities, usually rely on mortgage financing to acquire their first home and more forward as time goes by and have the possibility of generating surpluses, it is when these savings become feasible to think of investments such as those I mention.
Real estate investment IS NOT about hitting the jackpot; it is a smart (due diligence) long term investment.
A good real estate investment is one that is dedicated to properties in consolidated areas that already have all the services around it and have access to the main roads of the city, another option is to review the areas of the periphery, which according to the municipal plan development are benefited by the value of these dynamic areas and whose price is fair market.
Investments in real estate assets are generally long-term (5 years or more), since these are revalued over an average period of 5 years and their disadvantage is the lack of availability of immediate liquidity, therefore, mortgages Mortgage loan to 15 years are a good tool to finance these real estate investments, since they allow to finance the project without decapitalizing.
As in the purchase of any used property, attention should be paid to the following points:
1 - Identification of the property (exact address, measures and neighborhoods, specifications of available spaces and size, special features, square meters, age of buildings, state of conservation, project functionality, original use, Etc.)
2 - That it does not have fiscal debts, debts due to installments or in services, that guarantees the legal reorganization, that does not have liens that affect the legitimate property or affectations of public interest.
3 - That the seller owner complies with all the requirements that the public notary request for notarization.
4 - If the cadastral value is well below the actual purchase price, it must be updated so as not to expose itself to tax opinions that provoke payment of differential taxes that the tax authority can make effective up to 5 years ago, must pay what corresponds to him and the buyer the transfer of domain (tax for acquisition of real estate), the fees of the notary public can negotiate to pay them between both participants.
5 - Comply with all the requirements for the remodeling (permits, licenses, rights and fees of the contractor of the work).
Purchase recommendations:
1 - If you are thinking about the commercial premises for rent, the recommended option is to buy premises at the foot of the street or in small commercial complexes near residential areas, in urban areas with accelerated growth. Ideally, you should approach commercial spaces where there is enough parking for many cars, there is at least one convenience store, cinemas, department stores and a lot of potential customers traffic, ensuring their viability is successful.
2 - When it comes to office space, location is also the most important thing, not only to ensure easy access and parking amenities (preferably roofed), but also because of the people's status and their commercial image. In general, almost all service companies want to make a good impression on their customers, so they require functional common spaces, that are comfortable, well maintained and that your company causes a good face-to-face image. (synchronize with the surroundings)
3 - A very interesting fact is that at least 80% of the available offices are in rent and only 20% have the option to buy, because it is more suitable and profitable for the owners of the properties, rent spaces and maintain the Control and productivity of their buildings.
References:
http://www.preferredgroup.ca/
https://www.spirepoint.ca/
http://www.huffingtonpost.com
http://www.investopedia.com
https://www.thebalance.com
http://www.bankrate.com/finance/
https://www.forbes.com/
https://www.tonyrobbins.com
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