Buying a property is a dream for many, everyone wants to buy a dream house to settle and live in, but with this article we will introduce you to other methods that invite you to buy real estate whose goal is not only housing but to obtain a profit and return from investing your money in real estate.
Reasons for buying a property and ways to profit from it:
Buy to sell directly at a higher price:
This method is simple and many people know it, but few people use it, and not everyone wins in it. The success of this method depends directly on finding the buyer first who will want to buy and then finding a seller for this property and buying from it at a lower price and benefit from the price differences, whether it is land or house.
Buying to convert and sell:
This method is one of the most lucrative ways in which you convert the real estate activity to another activity such as transferring from residential to commercial or from commercial to residential or buying an agricultural piece of land and transferring it to residential or other type, the purpose here is to take advantage of price differences in the transfer and this method needs to know the future laws, regulations and plans that will be Divide it.
Purchase for transfer and investment:
It is the same as the previous method, but the difference here is to increase the profitability by investing in this converted property, for example buying a piece of agricultural land, converting it for commercial purposes, such as building a building on it or converting it to a commercial project, leasing it to others, or selling it after building on it, and the same applies to residential real estate by investing in it and converting to residential buildings then Either rent it or sell it after that.
Purchase for the purpose of price increases:
This is the most popular method in real estate investment and is done by many. It is simply buying a property and waiting for a period of time until its price increases, such as buying land and waiting for several years or months until the demand in the region increases or the house price increases in a certain area of the recession seasons and sell it in the season of many requests to homes To benefit from the return and the difference, the less the duration, the greater the difference between the purchase and sale price, the better because the capital is considered large.
Buy for rent:
This method is also popular and is used by many and does not require experience in the field of real estate investment, which is simply buying a property and offering it for rent to others and then renting it to obtain a monthly rental income. The constant without work, and this method can be developed to increase the income, either by adding additional floors and housing by investing additional money or by taking advantage of the income in developing the property.
Building purchase and lease:
It is simply buying a plot of land in a residential area and a distinct location and then investing large money in it in construction operations, either with the assistance of a contractor or supervising the building yourself to build housing units and then renting it to others, either residential, commercial or furnished to obtain a large monthly income and fixed and this method is common for those looking On stability, he does not want to work and undertake big projects, but his disadvantage is that he needs large capital at the beginning to buy land and build on it.
Buying to build and sell:
This method is also common, but it is used by people who are more experienced in the field of real estate investment, whether contractors or merchants. It is simply buying a plot of land or an old house and demolishing it, then building a modern and desirable house by others and offering it at prices lower than market prices , and this method requires experience and a team of workers to complete the sale in a very short time. It also requires reducing construction costs as little as possible to compete in the market while maintaining the quality of work.
Purchase for restoration and sale:
This method is also used by real estate investors, traders, and people most experienced in the real estate field, which is simply buying a property (house, commercial property, etc.) and then performing maintenance and cosmetic operations in it to appear in a good appearance and then selling it at a high price to achieve a large profit, and this method requires large capital and a ready-made work team And a trainer in addition to a large ability to know real estate prices and costs of restoration and estimate the profit before buying, so many do not use it because of the difficulty of finding buyers easily or difficult to sell the house quickly.