Everyone around is talking about investments and discussing ways to increase or preserve capital in turbulent times. The most traditional and understandable ways for most people to receive passive income from savings are investments in real estate and, of course, a bank deposit.
Pros and cons of investing in real estate in 2024
Investments in real estate have always been considered one of the most reliable ways to invest capital. What are the obvious advantages:
- stable monthly income from rental property,
- independence from exchange rate volatility and inflation,
- the general trend towards higher real estate prices in the long term.
Disadvantages that investors should consider:
- long payback period: according to current statistics – about 20 years,
- it requires an investment of not only money, but resources and time: searching for tenants/buyers, negotiations with consultants and other participants in transactions, etc.,
- Owning a property involves additional costs: repairs, utility bills, taxes.
What do banks offer us today?
A huge advantage of bank deposits is that opening a deposit is quick and easy: the client only needs to come to the branch with money and a passport. There are other advantages:
- known income in advance
- a sure way to save money (theft protection),
- bank deposits are insured by the state (partially),
- high liquidity: money is easy to return at any time.
Disadvantages are also present:
- low interest on deposits,
- dependence on inflation: money depreciates over time,
- loss of a share of income upon early withdrawal,
- insurance coverage limit (up to 1,400,000 rubles).
Having considered the advantages of bank deposits, we can conclude that this is the simplest and most reliable way of investing.
Looking to invest in real estate? How to choose an investment property in Sunnyvale CA
The main point when investing in real estate is the right choice of object.
So, in order to ensure a stable income from rent, when choosing an apartment you should rely on the following criteria:
Middle-class housing is easier to rent.
Usually, people who are looking for elite or, on the contrary, the cheapest offers, have a number of their own characteristics. The former may have too high demands, while the latter may have problems with payment and careful operation.
Tenants pay attention to infrastructure.
When renting an apartment long-term, much attention is paid to the presence of socially significant objects within walking distance; also, transport accessibility and proximity to the metro provide a great advantage.
Square footage of the apartment.
One-room and compact two-room options are in greatest demand.
An ideal investment object is an apartment in a comfort-class residential complex with an area of 30-50 sq. m. m near the center or in one of the popular family areas.
Find the best apartment for investment in Sunnyvale CA with Ramana Reddy – CalHomes real estate
We have been working in the market for over 10 years. We have been investing in real estate since 2020 with a yield of up to 30-40% per annum.
