Real estate in Szczecin. Many people have free money that can be used for any investment. They are important because inflation reduces the purchasing power of money, and as a result, fewer goods can be bought for the same amount of money. How much savings should you have to invest in real estate in Szczecin? What is subletting and is it worth noting?
Is buying a property to rent a way to increase savings? What is a real estate flip? If you are looking for answers to these questions, we invite you to read the article below, which will surely dispel any doubts of our readers.
How much savings do I need to invest in real estate?
In the vast majority of cases, investing in real estate in Szczecin is mainly related to the purchase of a new apartment. It is worth noting, however, that in practice this is only one of several available options. We do not always have to buy a studio apartment in the city center and rent it to make it profitable. What does this mean from a practical point of view? Well, we don’t need to have big savings to start with. The smaller the amount invested at the beginning of our venture, the less stress and risk associated with possible failure. The level of investment increases significantly with experience. Remember that investing in real estate in the vast majority is not passive income. It doesn’t just come down to displaying cash and calculating profits. Owning real estate requires a lot of regular work. The right time is almost the key to success.
What is subletting and is it worth noting?
A great way to start our investment adventure may be to sublet a property in Szczecin. This form does not require us to allocate a large amount of money. But what is the aforementioned sublease? Well, in this case, we decided to rent a property that didn’t belong to us. First, we rent it ourselves, then we play the so-called. the role of the master. But the point is that you have to run your own business. In addition, in the contract with the actual owner, we must have a clause informing about consent to a possible further lease. It is also worth specifying the possible rules of cooperation – e.g. how long the property will be available and what steps should be taken to increase its attractiveness. If we can afford it, let’s opt for the best training to familiarize ourselves with the laws that apply in this area.
Is buying a property to rent a way to increase savings?
Buying a property in Szczecin and then renting it out is a great way for investors who already have some capital, but are also interested in investing it in real estate. In this case, the level of commitment to money and time is at a similar level. It is worth noting that buying a flat and finding a tenant are not the only things we have to do. In most cases, the house needs to be renovated, remodeled and properly equipped. Let’s also take care of his condition to make it as good as possible. We have two ways to earn money: long-term rental and short-term rental. In the first case, the target group is students, young couples and employees. The advantages of this solution are relatively stable rental income and lower real estate maintenance obligations.
What is a real estate flip?
There is another way to invest in real estate. This is called flipping, and it involves buying something cheaper and selling more. The property in Szczecin seems to serve this purpose almost perfectly. This is an increasingly popular form of investing, although in practice it is not as simple as it might seem at first glance. The whole point is that real estate in Szczecin was bought below market value and sold above market value. Unfortunately, this is not an ideal approach. First, we need to have enough money. In addition, the need for renovation is a common phenomenon. The question is whether the flip is profitable. It turns out that the average return is around 15%, but in extreme cases it increases to 30% or 50%. However, let us remember the basic principle – the easier it seems to earn money, the more traps await us. So before we decide to flip, let’s make sure it’s the right solution for us.