In what way should investors behave on the eve of financial crisis, if they have available financial assets of more than one million rubles?
Where it is worth to invest funds in order to obtain high and stable income and free from risks of investments?
In order to understand where it is really worth to invest the funds, let’s look at what happens to the investors’ traditional tools of investing money, to residential apartments, bank deposits, commercial real estate.
Investing in residential real estate or Investing in real estate
Real estate is always considered to be the best way of investing money. Let’s compare the figures by the concrete example. A great amount of apartments are purchased for subsequent lease and making profit. But if we compare the performance cost of rent for residential apartment and commercial properties with a rental business, we can observe the following picture: one bedroom apartment in Ufa, in the new building, in 45 square meters will cost three million rubles. Monthly income from the rental of such housing will be 17 000 rubles per month. It is also important not to forget that the part of the funds will be diverted to the payment of taxes, face-lift, and purchase of furniture.
Let’s calculate the profitability of commercial properties. For the same three million one can buy a commercial space on the ground floor of a residential building with a ready-rental business.
Monthly income from renting a commercial property will be 31 000 rubles per month. Thus, buying a commercial property rental income is several times higher. In this case, the commercial areas, in contrast to the residential “squares” relieve their owners from household chores: buying furniture is not necessary, and the face-lift is frequently made by the renters.
What if to invest in bank?
Due to the today’s unstable economic situation the banks do not guarantee the conservation and enhancement of the funds.
Licenses withdraw from some banks make nervous depositors, and also the compensation or insurance payment on deposits does not exceed 700 000 rubles.
Why it is profitable to invest on commercial properties with a rental business?
Real estate purchase is one of the most popular and undervalued options of investing funds. The most profitable investment product is the commercial premises in the format of “Street Retail” with ready-rental business. These are objects with a separate entrance on the ground floor, located on the “red lines” of the city, in places with heavy pedestrian and car traffic. Monthly revenue from rental business is 50 000 rubles, plus to this the buyers of the square meters can be sure in the safety of their funds. Besides the monthly income, the commercial real estate makes a profit hereafter. Its value increases by an average of 8-10% per year. Such growth provides increased demand for rental business. Against the background of an unstable ruble competent investors choose this very method of investing.
Real estate experts figured out that the commercial areas can bring more in return than apartments. In addition, the reliability and stability of commercial tenants is higher than one of private persons. The average length of apartments’ rental is the year, of commercial premises – five to seven years. This guarantees that you will have a profit in the next few years and absence of standstill of the areas.
Also it should be noticed that the cost of repairs of residential apartments and purchase of furniture weighs on the owner, while commercial properties are rented unfurnished and require a light face-lift, which in most of the cases is made by the lessee. Moreover, the commercial properties grow in value fast, and rental rates increase respectively.
«”Investing” in the property with the tenant, the investor has an absolute guarantee of making profit starting with the first day after the purchase.
A huge advantage of acquisition of commercial objects with ready rental business – this is the safety of investments. Real estate is only constantly increasing in price, which is the key to a sustainable income.
For whom and why such product as rental business may be interesting and what are the main advantages of it?
Firstly, it is for the entrepreneurs seeking to have alternative sources of additional revenue, apart from their main business. Just as for people with savings of more than 1 mil. rubles., wishing to invest their money with high yield and minimal risks and opportunity to acquire a passive monthly income that does not require investments of their own time. These investments may be interesting for those who were simply going to buy an apartment.
The question is why you sell such objects, if it is so profitable business?
The essence of our company’s business is not in renting of already available apartments. Our specificity – is the purchase and sale of ready-made objects with a rental business, we maintain a constant turnover of purchase and sale objects, acquiring complex objects of the real estate, in respect to technical and legal issues. In the presence of qualified professionals, we have an opportunity to put in order all the documents and technical details in a few months. Then we conclude a long-term lease agreement. After that, these objects we sell at normal market price. For ordinary consumers, this process will take at least several years, and in some cases may not happen at all.
Summarizing all proceeding, one can say with certainty that today in times of unstable economic situation in the country and in the world, investing in commercial properties with rental business (street retail format) is the most profitable and reliable way of investing money. In addition, as we were saying earlier, the yield of these investments is significantly above the most of investment instruments.
Apply to our company, and we will pick up the object for you depending on your wishes and amount of investments.