Is it worth having real estate investments nowadays?
4 users upvote it!
4 answers
Well it depends :)
First of all, you have a VERY large share of real estate in your portfolio. This may or may not be a problem.
This is a problem if you treat real estate as an investment asset - in which case you should diversify your portfolio more and put $ into other assets so as not to lose money.
This is not a problem if you want to treat real estate as your business on which you will be constantly working - an entrepreneur will usually be able to adapt to virtually any situation, no matter how dire the situation is and the taxes are high.
In your case (you have given someone over 60% of the property to manage), this is rather the first option, and therefore it is worth considering diversification.
Since you have already educated yourself in other investment areas, in the near future, simply load all the funds allocated for investing into other types of assets to be less dependent.
Unless you want to specialize in investing in another market (then sell a flat to have capital), leave these flats for yourself, because there shouldn't be a problem with them.
- Ev. you will simply transfer the increase in the loan installment to the tenants (your companies will probably do it for you)
- The bubble, even if it is there, will not burst in the near future, because 2 million Ukrainians have come to Poland, many of whom will probably want to stay, because their houses have been destroyed with Russian bombs.
Puenta - You have nothing to fear. Just focus on investing in other assets.
ps. Remember that this is not an investment advice understood in the interpretation of the act;)
Well it depends :)
First of all, you have a VERY large share of real estate in your portfolio. This may or may not be a problem.
This is a problem if you treat real estate as an investment asset - in which case you should diversify your portfolio more and put $ into other assets so as not to lose money.
This is not a problem if you want to treat real estate as your business on which you will be constantly working - an entrepreneur will usually be able to adapt to virtually any situation, no matter how dire the situation is and the taxes are high.
In your case (you have given someone over 60% of the property to manage), this is rather the first option, and therefore it is worth considering diversification.
Since you have already educated yourself in other investment areas, in the near future, simply load all the funds allocated for investing into other types of assets to be less dependent.
Unless you want to specialize in investing in another market (then sell a flat to have capital), leave these flats for yourself, because there shouldn't be a problem with them.
- Ev. you will simply transfer the increase in the loan installment to the tenants (your companies will probably do it for you)
- The bubble, even if it is there, will not burst in the near future, because 2 million Ukrainians have come to Poland, many of whom will probably want to stay, because their houses have been destroyed with Russian bombs.
Puenta - You have nothing to fear. Just focus on investing in other assets.
ps. Remember that this is not an investment advice understood in the interpretation of the act;)
Machine translated
3 likes
Keep the land and even buy more.
When is the best time to buy land?
The best time, from the investment point of view, is predictable, regardless of economic or social factors. The price of agricultural land in Masuria from 2004 to 2020 increased by an average of 900%, and in some cases even more. We are talking not only about the security of investments, but also about a satisfactory profit. Therefore, the sooner you buy land, the better for you. Another matter is what plot to buy. I recommend agricultural plots along the routes leading to large cities. The best time is late fall. There is always a slight downward revision in prices, the end of the year is approaching, holidays and retailers are more likely to go down with the price. The land itself does not look as attractive as in spring or summer.
But don't wait for a serious decline in the trend. He will not be there. Europe is overpopulating and there is less and less land.
Keep the land and even buy more.
When is the best time to buy land?
The best time, from the investment point of view, is predictable, regardless of economic or social factors. The price of agricultural land in Masuria from 2004 to 2020 increased by an average of 900%, and in some cases even more. We are talking not only about the security of investments, but also about a satisfactory profit. Therefore, the sooner you buy land, the better for you. Another matter is what plot to buy. I recommend agricultural plots along the routes leading to large cities. The best time is late fall. There is always a slight downward revision in prices, the end of the year is approaching, holidays and retailers are more likely to go down with the price. The land itself does not look as attractive as in spring or summer.
But don't wait for a serious decline in the trend. He will not be there. Europe is overpopulating and there is less and less land.
Machine translated
3 likes
Yes, it's definitely worth it, you have to protect your money somehow. Maybe real estate does not consist of only advantages, but they definitely have more than disadvantages.
Some are primarily looking for assets that generate passive income. They are usually people with a stable financial situation, who care about capital protection and have a certain amount of knowledge about financial markets. Due to lack of time or inclination, they are not interested in juggling assets or have a short investment horizon. They want to make a thoughtful choice and then enjoy the results, without spending a lot of time managing this part of the estate.
The most common choice in this case is real estate for rent. Of course, this solution has disadvantages in the form of the need to make necessary renovations and repairs and the risk of finding unreliable tenants, but there are companies that can be entrusted with dealing with these matters for a fee. In addition, with several properties, it may be worthwhile to hire your own manager.
You also need to consider what you care about: whether the property should be an investment for the future, or you are more interested in the highest rental income today. We have thriving cities where housing prices will almost certainly be much higher in the future, and cities where young people are leaving because of lack of prospects or other circumstances. In the first case, you will pay more for the property itself, but in a few years it will be easier to sell it with a satisfactory profit. In the second, it may be different, unless in exchange for a lower price you put a lot of money into renovation and create an apartment that will stand out.
If you prefer to have passive income, and at the same time you are unable to buy even a small apartment in a small town, look for an investment opportunity such as garages for rent. In some towns, you still have a chance to find a piece of land near blocks of flats and rent it, e.g. from the city. Put up a few tin garages and look for people willing to rent. It won't be a quick way, but who knows, maybe it will pay off in the long run, as long as you take care of the formalities and don't come across strange or unreliable tenants. Unfortunately, there is always a risk that the idea will not work out, just like everyone else.
One more thought came to my mind: real estate crowdfunding, i.e. buying part of a commercial project related to the construction of real estate. In contrast to the independent purchase of a house or flat, the entry threshold for such a project is low and may start from as little as several hundred zlotys. Thanks to this, we can become a co-owner of many facilities and derive profits from various sources, and at the same time we do not have to deal with the formalities and we do not have to deal with the property personally. I suggest taking a closer look at this solution.
If you have a choice, it is also worth having other assets that store value, e.g. land in an attractive location or physical gold, e.g. in the form of bullion coins.
A year ago, I would advise you to exchange some cash for currencies such as the dollar, franc or euro, but in recent months their value against the zloty has grown so much that it no longer makes much sense. However, it is worth keeping this option in mind for the future.
In conclusion, do not dispose of your assets hastily. It is safest to diversify your funds between several different assets and react flexibly, depending on the situation, which has calmed down for now.
Yes, it's definitely worth it, you have to protect your money somehow. Maybe real estate does not consist of only advantages, but they definitely have more than disadvantages.
Some are primarily looking for assets that generate passive income. They are usually people with a stable financial situation, who care about capital protection and have a certain amount of knowledge about financial markets. Due to lack of time or inclination, they are not interested in juggling assets or have a short investment horizon. They want to make a thoughtful choice and then enjoy the results, without spending a lot of time managing this part of the estate.
The most common choice in this case is real estate for rent. Of course, this solution has disadvantages in the form of the need to make necessary renovations and repairs and the risk of finding unreliable tenants, but there are companies that can be entrusted with dealing with these matters for a fee. In addition, with several properties, it may be worthwhile to hire your own manager.
You also need to consider what you care about: whether the property should be an investment for the future, or you are more interested in the highest rental income today. We have thriving cities where housing prices will almost certainly be much higher in the future, and cities where young people are leaving because of lack of prospects or other circumstances. In the first case, you will pay more for the property itself, but in a few years it will be easier to sell it with a satisfactory profit. In the second, it may be different, unless in exchange for a lower price you put a lot of money into renovation and create an apartment that will stand out.
If you prefer to have passive income, and at the same time you are unable to buy even a small apartment in a small town, look for an investment opportunity such as garages for rent. In some towns, you still have a chance to find a piece of land near blocks of flats and rent it, e.g. from the city. Put up a few tin garages and look for people willing to rent. It won't be a quick way, but who knows, maybe it will pay off in the long run, as long as you take care of the formalities and don't come across strange or unreliable tenants. Unfortunately, there is always a risk that the idea will not work out, just like everyone else.
One more thought came to my mind: real estate crowdfunding, i.e. buying part of a commercial project related to the construction of real estate. In contrast to the independent purchase of a house or flat, the entry threshold for such a project is low and may start from as little as several hundred zlotys. Thanks to this, we can become a co-owner of many facilities and derive profits from various sources, and at the same time we do not have to deal with the formalities and we do not have to deal with the property personally. I suggest taking a closer look at this solution.
If you have a choice, it is also worth having other assets that store value, e.g. land in an attractive location or physical gold, e.g. in the form of bullion coins.
A year ago, I would advise you to exchange some cash for currencies such as the dollar, franc or euro, but in recent months their value against the zloty has grown so much that it no longer makes much sense. However, it is worth keeping this option in mind for the future.
In conclusion, do not dispose of your assets hastily. It is safest to diversify your funds between several different assets and react flexibly, depending on the situation, which has calmed down for now.
Machine translated
Machine translated