6 worst types of real estate investments

Any experienced real estate investor knows that not all properties are the same for reverse. Therefore, homes that could be perfect to have as a primary residence, they can be very profitable to rent and cause loss of money to its owner. Here is a list of issues to avoid if you are thinking of buying a home as an investment

Not all properties generate rental income

It is unwise to invest in second homes or land if you search a return by way of rent. Some opt for this type of property with the expectation of a rise in its value, but there is an opportunity cost that must be assessed together. Depositing the money in this type of investment involves ignoring other revenue having the money stopped, so before buying and wait for rise in price, estimate how much money would have earned if the money had it in the bank in shares and / or bonds.

Exploitation of any property can generate losses

if a property of high value, a beach house or vacation rental property is purchased to do the numbers and costs of the acquisition but its what you want is to have a recurring income each year. Buy and operate a rental housing generates miscellaneous expenses maybe not we compensate with the rent. Therefore, it is advisable to buy houses as investments that are profitable from minute one and we quickly provide income, ie you have to buy houses at moderate prices and not necessarily in prime areas with surcharges

Co-invest with other investors

Have become popular in several countries, property belonging to several people? Are a way to diversify a portfolio without having to deal with the hassle of owning and managing properties, but few people have won considerable money with them for costs and commissions involving

Make particular promoter

to promote and develop a real estate project in soil is a very high risk business, ranging from the legal, construction and price, among others. These investments do better than the hnwi and experience who can run the risk that they will never see their money again

Condo-hotels, multi property, and other types of foreign investments

Buy a hotel room and left to the manager or management are the dreaded timeshare investments where there is no ability to predict cash flow rental income or the future value of what we buy. In addition, when they want to divest are difficult to resell

Invest abroad

You can buy houses in Canada, US or London because housing markets are powerful. but we must always take into account the currency risk. ie if you buy a home in dollars, but the house can have up losses if the dollar low. Addition, different laws and make them a risk investments in which you have to be very cautious