Daily Archives: January 10, 2017

Ways to Invest in Real Estate


Since one of our readers asked us to discuss the subject of investment in real estate, let’s talk about it in depth, explaining all the ways you can invest in real estate and some tips to keep in mind. Say first of all That although real estate investment has historically been even more profitable than equities, the fact is that it is a type of investment that requires more capital in most of its forms, or of intelligent borrowing in other cases. Then it is not buying a house asking for a mortgage in the hope that the price of the property will rise.

That is strangulation financially, although it is possible that the property can be rented for a monthly price higher than the payment of the mortgage. Difficult, but possible. Otherwise, this type of investment would be considered risky having acquired a debt in a non-liquid asset. At the moment, at least in Spain, even with a fallen real estate market that does not raise its head, has arisen a business opportunity around Of the investment in garages.

And as you will have seen, practically all cities are having more and more parking problems, facilitating the growth of parking, and causing an increase in the price of parking spaces. In principle, the investment in garages promises to be very profitable for the next years. REITs are companies that invest in real estate assets with the idea of generating income and paying investors in the form of dividends.

They are attractive because they are often subject to very low taxation. However it is a complex investment that would require explaining it long and hard, as they also invest in mortgage loans, stakes in other REITs and shares. REITs have a daily quote, so their price fluctuates daily. Another advantage is that it is a liquid asset that we can sell quickly, but it carries risks.