Low cost housing with good profitability

Low Cost Housing With Good Profitability Details From Experts
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09:30 AM 24 Nov 2017

The purchase of the house and the sale with guaranteed rent are two investment alternatives that have reactivated after the crisis. Buying a house to rent is the most common operation, but it is not the only one. Other modalities have reactivated the acquisition of owned housing and sale with guaranteed rent.

In both operations, there are two main players: a person who owns a home who wants to increase their income and an investor who, although benefiting from lower selling prices, knows that he is embarking on a long-term operation. 

But there are differences between these two types of investments. The property consists of the purchase of a home. For the investor, the business is in the purchase of housing below the market price. But in general, the very expensive properties are not the most attractive for investors, who prefer more moderate prices. 

Tenant for life

The other alternative is the sale and purchase of rent. They are long-term contracts. To have a tenant, the one who has been his owner up to now, who takes great care of what has been his home for life will give you the stability of not having permanent changes of tenant or periods with the house empty.

In this case, the payment of purchase costs is distributed between buyer and seller: the first takes care of the notary, the registration and the tax of property transfers and housing insurance. The seller will pay the municipal capital surplus, the capital transfer tax for the lease and the supplies.

By:  Shailaja K