Passive investment in real estate
Real estate investments are categorized into active investments and passive investments. Today we will focus on passive investments as a satisfactory and effective way of increasing income. Passive investment in real estate is a way of investing without significant effort or participation daily assets by the investor.Investing in real estate is the way many individuals have decided to build and grow their wealth. The benefits of investing in real estate are many and you can have high returns and excellent and continuous return on investment. The most common form of passive investment is the purchase of real estate and for rental purposes. Typology of the premises intended for this purpose can be diverse commercial premises, offices, apartments, villas and of course holiday homes.
Passive investment in real estate is a type of investment where you can generate income without spending a lot of time in the day to day management of the property. Passive investments in real estate do not necessarily require a continuous daily management on the part of the investor. This is seen as a very positive side of this investment as it allows you to have time to perform daily daily activity without having to devote time and energy to property maintenance and management. One very effective way that has started to spread rapidly recently is property management by Real Estate Agencies specializing in real estate management. Agencies have the right instruments and professional staff for property management, which includes not only technical maintenance, necessary repairs, but also periodic revenue management, paying annual fees, finding suitable landlords, negotiating legal contractual terms, and legal representation of the interests of the owner. See more at https://realpas.al/management
Accommodation in comfortable and cozy apartments has always been a necessary need of society and especially took on another value during the time of the pandemic where people are spending more and more time in their homes. Buying real estate has always been considered as one of the safest forms of investment and especially buying apartments in large malls or tourist sites.
What elements should we keep in mind when deciding to buy a real estate intended for investment?
-Location: a good location is generally determined by a desirable neighborhood, with good schools nearby, institutions or business units, which provide security for the area. Mostly, individuals prefer houses with short distance from work place and with fast access to public transport or suitable road infrastructure.
-Surfaces: Homes with larger areas are more difficult to rent than homes with smaller areas. Usually even for apartments with large areas, it is suggested to separate them and benefit from two or more apartments, which are a very good way of investing with a very satisfactory income.
Quality of construction: buying an apartment in a new residential building often translates into lower costs for repairs and maintenance. As living standards increase, individuals are more inclined towards new constructions and are willing to pay a lot. greater money in order to have a more comfortable living and in a building with high security.
Seasonal accommodation through AirBNB or other similar platforms is a trend that is growing a lot lately. Tourists are increasingly deciding to stay in day rental apartments as opposed to hotels and this is something very positive for owners who have decided to invest in these types of properties. Individuals have decided to use Airbnb due to the practical benefits of the service such as low cost, convenient location and home appliances that create a more comfortable accommodation. Also apartment owners are generally directly related to their property and are inclined to stay very close to clients and are willing to help them with advice and guidance on their travels. According to recent studies, individuals stay on average 2.4% more in properties given for use through Airbnbs than in hotels. [1] This confirms the continuous increase in demand for assets of this nature in the near future.
An excellent and very profitable investment is investing in houses or apartments in tourist areas. The Albanian coast is quite popular not only by local tourists, but also by foreigners who prefer to spend their holidays near the wonderful Adriatic and Ionian seas. This tendency is mostly related to the climatic conditions and the very favorable geographical position of Albania, but obviously also due to the improvement of road infrastructure and services in the coastal areas. According to statistics released by INSTAT, the number of foreign tourists entering Albania has increased significantly from year to year. Since 2014, when about 3,672,591 individuals entered the country, this number has always been increasing, reaching 6,406,038 in 2019. [2] Considering these figures when buying a vacation home is important to see as a long-term investment. Many tourists all over the world want to discover the beautiful Albanian shores. As a result there are many people who want to rent an apartment located on the beach with direct access to the sea. Moreover if the accommodation also offers parking opportunities, or other facilities, the rental price can be quite favorable.
REALPAS has a diversified portfolio of properties which may be the object of your future investment. Visit the platform www.realpas.al to find suitable property for this purpose. And to find out how we take care of the professional management of your property.
Book by phone +355684073990 or email [email protected] an appointment with one of our real estate consultants to find out more about how you can easily perform the necessary procedures for making a strategic investment in real estate.
Act intelligently! Invest in real estate today that will give you a satisfying income and financial stability in the years to come!
[1] https://www.stratosjets.com/blog/airbnb-statistics/
[2] http://www.instat.gov.al/al/temat/industria-tregtia-dhe-sh%C3%ABrbimet/turizmi/#tab2