short and long term investments: which one to choose?

It is better to buy and resell or buy and make income?

When you make a property investment uses capital on hand to buy a property then rivenderai O give for rent.

These two options are techniques to invest in property with objectives and strategy very different.

In the article I'll explain what they consist of the two techniques real estate investment to make you understand what it can do more for you.

First of all, as I explained in a previous article, there is a very important thing that you must always consider make a good investment: your goals.

The decision to invest in the short or long term it depends only on you, gives what are your needs, how much you want to earn and in what time.

Although the aim is always to make your money increase, the two techniques are different and precisely meet different needs.

So you have to first define precisely What do you get for your investment, and not only in strictly monetary terms.

Let's look at the differences between the two types of real estate investment.

Short-term investments: buy to sell

When investing in short-term real estate choose to employ an amount of money for buy property with the aim of then resell and obtain a immediate gain from this operation.

Buy a property for resale is, therefore, an activity that allows you to get a gain, "all at once" in times relatively short.

Most often this type of investment will include an intermediate phase renovation allowing you to revalue property, to make it more attractive to potential buyers and to sell it at a price from which to derive an interesting earnings.

This technique is suitable for you if you want to Grow your capital significantly and In a short time.

Here is a’real estate transaction a short term we did make an investor over 14 months with a gain of the 12%.

short-term Investment – “Loft Wish”

Immobile: trilocale 80 m²

Place: Milano, Porta Romana

invested capital: between 200.000 e i 300.000 €

investment Duration: 14 months

Gain: 12%

An investment like this, in Milan, with buying a property, restructuring and sale, It can give you a over the yield 10%.

Here you can deepen: https://21srl.com/property_post/loft-dei-desideri-milano/
Long Term Investments: buy to make income

When investing in long-term real estate choose to employ your capital buy property with the aim of then put in rentals, to get a periodic gain from this operation.

Buy a property for creating some income so it is a long-term activity that allows you to have a 'constant input derived from lease.

This technique is suitable for you if you want integrate your capital with a'Monthly additional income.

Here is a’real estate transaction a long term we did make an investor earning him a gain annual of the 7%.

long-term investment – “Milano Monochic”

Immobile: studio flat 35 m²

Place: Milano, Porta Romana

invested capital: between 100.000 e i 200.000 €

investment Duration: 9 months

Gain: 7%

An investment like this, in Milan, with buying a property, restructuring and income generation, can make until the 7% annual.

Here you can deepen: https://21srl.com/investimento-lungo-termine-caso-successo-milano-monochic/

Better a short or long-term investment?

Who wants to invest in property there always asks these questions: “What is the best solution?”, "What is the technique less risky?"" What makes it more?”.

Here's my answer: the best solution is only one that meets your desires.

I want to make you understand that there is a better solution than another: I'm both of the excellent technical investment. When investing in real estate you have to opt for a short or long-term solution only according to tue royalty needs.

You have an amount of money and want to invest it to have a significant monetary return (for example, the 10%) immediately? Then buy and resell.

You have an amount of money and want to invest it to create for you an annual gain (for example of the 7%?) constant over time? Then buy and put to income. Keep account of this investment property income benefit: you not only gain from the location but you are also the owner of a property.

According to capital at your disposal and the intention to obtain an immediate or periodic gain entrance, choose the road that you think could take you to reach better your goals.

Each investment technique has its own rules

You have to understand very well the difference between the two techniques because, when you choose a street and not another, you have to put in place all strategy of that particular type of investment that are diverse from those of the other type.

I'll give you a few examples to get you better understand.

Think choice of the area where buy property. This phase, which is the first and one of the most complicated because it crucial to investment success, It is very different in the two cases: one thing is to find the area where people are more likely to buy, another is to select the right place where people need of to rent a house.

Also there Property type she is different: think of a student looking for a room for rent during his university years and, instead, to a family looking for a very spacious house to buy in anticipation of a new child.

If you think about it, Furthermore, They are also different internal characteristics of the property that a tenant or a buyer expect.

These are only some examples to give you an idea of the elements that must be taken into account if you want to make real estate investments.

Per invest in real estate securely, both short- and long-term, In fact you know all the "Tricks of the trade" that ensure you do not make mistakes. It is an activity that requires commitment and experience.

For this we should sincerely turn to experts the industry who follow you step by step throughout the course of the investment, from the choice up to the moment when you will have in your hands is your gain.

If you want to know more on investment property check guide the box below: find our advice for anyone who wants to start invest in real estate.