Investing in real estate without money. How to invest in real estate and is it worth it? Buy an apartment at the initial stage of construction and sell it after putting the house into operation

Investing in real estate without money, i.e. how to generate income or purchase real estate without a down payment. We will also consider which types of investing money in real estate are more profitable.

What is usually understood by real estate investment is to buy an apartment and rent it out.

For many, such a formulation of the question, or rather a solution to it, is unrealistic. I propose to consider all the options and dwell in more detail on rooms, as the most profitable and feasible at the initial step towards investing in real estate.

We learned from the examples in the article “” why it is profitable to invest money in real estate, and we learned where you can find the cheapest real estate from the article ““.

Investing in real estate without money: options, methods

Rent an apartment daily

Renting an apartment daily can bring in more money than if you rent out an apartment monthly, but this approach will require more time from you. You will be quite closely involved in this process.

Even if you find a management company, there will still be risks. Who usually rents apartments: business travelers, students, tourists.

You should be careful in choosing guests, I already told you in detail, about this in the article ““. That is, it is possible that you may arrive at the apartment and find a drunken brawl, angry neighbors, giving an explanation to the police... and the one to whom you entrusted to manage the rental of the apartment will be to blame.

In this case, a debriefing is inevitable and you will have to look for a manager again, or rent out the apartment yourself.

The management company will help determine the reliability of the tenant and prepare a competent contract, and most importantly, upon departure, it will make sure that everything is in order in the apartment.

Renting an apartment monthly

If you have found (or have been found) quite decent tenants, then you are guaranteed a monthly and stable income.

In the event that you have used a mortgage and most amount taken on credit, then the income will be either minimal or there will be no income at all; the apartment will pay for itself with the help With dacha for rent - monthly payments will “eat up” your income.

It may happen that you may not receive any income at all, and perhaps also have to pay the bank extra from another source of money.

Renting an apartment room by room: monthly and daily

The total income with this option is greater than when renting out an apartment to one tenant, but at the same time, problems may arise in finding long-term tenants.Here, too, you will need to devote more time to the issues of renting out rooms in the apartment.

Because the main tenants will be students or visitors, then the turnover will be stable. The pros and cons of renting an apartment by the day, I spoke in more detail in the article “” - be sure to read it to have a complete understanding of what we are talking about.

This is already a fully-fledged business based on investing money in real estate. Alternatively, you can use the services management company to be less involved in the red tape of apartment maintenance, cleaning, security and housing tenants.

This option can also be called a mini-hotel. It is suitable for those apartments that used to be communal apartments. Regular 3-4 room apartments with separate rooms are suitable.

Here are the options: rent out rooms or a bed.Monthly is still more profitable and less troublesome than daily.

How can I do it?

Buy a room in a communal apartment of about 22 square meters. m, divide it into 2 rooms of 10 meters each and rent it out as two full rooms. A sectional dormitory is also suitable, where to rent out rooms you can do the same as with a communal apartment, if the square footage allows.

In this case, you can rent out two rooms, but at a price slightly less than the market - this will ensure a constant influx of people wanting to rent an apartment and the desired profit.

If there is no option to buy a large room and subsequently divide it, then rent out one room - have patience and start small :)

How to invest in real estate without money: rooms

You can start investing money in real estate by buying a room with a mortgage. How? There are quite a lot of rooms for sale on the real estate market, for example within 1 million rubles.

You will be able to negotiate with the owner for an amount of up to 10%, i.e. 100 thousand. Then the appraiser evaluates this room at 1150 thousand rubles and you get a difference of 250 thousand rubles as a down payment.

If you do not have an official job, then you have friends and relatives who can help with official employment - let the seeker find :)

The only caveat (how could we live without them :)) is that the income from renting out a room can and, as practice shows, will be lower than the amount that must be paid for a loan of 1-3 thousand rubles. If you are not afraid of this, then this option of purchasing and purchasing a room is for you.

In the sales contract, the amount for which the room is purchased should not exceed 1 million rubles.

A situation may also arise when the consent of other owners is required for the sale of the room you are buying. In practice, it can be difficult to obtain consent, either the owners do not make contact, or they are not in the city - there are a lot of reasons.

You have to involve a notary, write letters and wait 30 days, the deal is delayed, time is ticking. But you can solve the issue of buying a room much faster.

How? The seller can give you 1/100th of a share in his room, and then you, as a co-owner, will buy the steel shares from him.

Then, using the same scheme, you purchase the second, third and subsequent rooms. Then you can sell this property and move on to a larger one - buy apartments and commercial real estate including.

country estate

Can be rented in summer country house, especially if it is located next to a lake. In summer, on holidays, on New Year and so on. In truth, it may not be very profitable, and the depreciation may be quite large - they will rest, they will beat something, break it, tear it off, and so on.

And you did everything for yourself and with love... in general, it was not very pleasant.

If we talk about renting countryside real estate daily, its cost varies from 3,000 to infinity, depending on the region and seasonal period.Don’t forget, in this option you also need to take into account the depreciation factor...

Choosing a commercial premises

As a rule, the profitability of such commercial real estate will not be much higher than the deposit that can be obtained from a bank.For comparison, if a deposit today will bring you from 8 to 9% per annum, then a similar premises will bring you from 13%. We talked more about choosing commercial real estate in the article ““.

We figured out how to invest money in real estate without starting capital. Now you know where you can invest money in real estate, you know with a specific example how this can be done. The rest is only your desire and the ability to tear yourself away from the chair :)

I wish you success!

Specialists from the analytical center “Real Estate Market Indicators” assessed the most accessible and common methods of investing in real estate in terms of their profitability and riskiness.

Method 1. Rent a room. Since real estate today is not a cheap purchase, not everyone can invest money in it. Hence, the best option is to buy not the whole apartment, but part of it, that is, a room. In the capital, such a purchase will cost about 50 thousand dollars. At average rental prices, this money will return to you in 5-10 years, that is, the income will be 10-20% per annum. This is much higher than the yield from renting out an entire apartment (about 5% per year), and the apartment costs much more - 160-200 thousand dollars.

Method 2. Buy land. The price here is an order of magnitude lower - from 2 thousand dollars per plot. However, this is a rather risky and, in the long term, costly investment option. Suitable land it is difficult to find and privatize, and it does not guarantee constant profit. However, there is a chance that in the near future land plots around cities will rise significantly in price (by 15-20%) due to the development of cottage construction. And there is no need to spend money on maintaining the land - maintaining it in proper condition, like an apartment, repairing it and paying for housing and communal services, for example.

Method 3. Become a shareholder. A few years ago, buying an apartment while the house was still under construction allowed you to save up to 30% of its price. Now the situation has changed - developers are trying to sell their goods at the same price at all stages of its production, that is, shareholders are not able to save money. However, analysts believe that in the difficult situation in which the crisis has placed builders, developers will begin to provide significant discounts on secondary housing - up to 15%. Accordingly, when your apartment is completed and decorated, you will be able to sell it for more than you bought it for.

ATTENTION! We have all heard enough about the stories of defrauded shareholders. Therefore, even without analysts, it is not difficult to understand that investing money in the secondary market is a risky business.

Method 4. Buy a housing certificate. A housing certificate is a piece of paper certifying your ownership of a certain living space in a house under construction, and this area can reach up to 1 square meter. When the house is completed, you can exchange the certificate either for the corresponding amount of money (the price will increase by the end of construction), or for an apartment - of course, with an additional payment at the new price. Like shared construction, this method allows you to save on the difference in the cost of “secondary” and “primary” construction.

ATTENTION! If you are not going to resell the area purchased under the certificate, but want to live on it, this method is even more risky than shared construction. Because it is far from a fact that there will be an apartment in the house that corresponds in size to your certificates. In addition, construction is a long process, and in the near future, real estate prices in Russia may seriously fall. So, at best, you can sell the certificate for what you bought it for. On the other hand, inflation will not eat your money.

Method 5. Invest in closed real estate mutual funds. This is a fairly new instrument for Russia. It allows you to invest almost any amount and receive dividends from it. The management scheme for the shareholder is absolutely transparent and the profitability is up to 100% per annum. However, in the current crisis conditions, this figure may be significantly lower, and the return on investment period is not short - at least 3 years. Because you can withdraw your money from the mutual fund no earlier than this period.

Method 6. Invest in foreign mutual funds. REIT (Real Estate Investment Trust) is the name of an analogue of our closed real estate mutual funds abroad. All funds invested in REITs are invested in real estate different countries, which allows you to compensate for possible losses in one market with profits in another. The profitability compared to domestic mutual funds is not very high, but for foreign ones it is significant - 5-7% per annum. The minimum investment amount in a mutual fund is 1-3 thousand dollars.

ATTENTION! Analysts consider this investment method to be the most profitable, taking into account the very low risk and fairly high profitability.

Method 7. Buy an apartment abroad. Recently, the media has been filled with news that Russian millionaires are buying villas in Spain, London, or somewhere else. Which is not surprising: millionaires are generally not stupid people and know that in Europe real estate is much cheaper than in Moscow, for example. Focusing on the powers that be, people think that by selling a mediocre two-room apartment in the capital, you can buy a house in Spain and live comfortably with the remaining money.

But in reality everything is not so simple. Firstly, paperwork for the purchase of square meters abroad is a long and complicated procedure. Secondly, many European property markets are currently falling and are unlikely to recover in the coming years. So you are unlikely to be able to profitably resell (or even sell) your purchase. Thirdly, the lower investment threshold is high - from 100 thousand to 300 thousand dollars. Fourthly, you have to pay for the maintenance of the purchased apartment or house - to the state in the form of taxes and to utility companies for their services. And in Europe and the USA these figures will be much higher than in Russia.

Method 8. Buy land abroad. It's much cheaper. The lower investment limit is $15 thousand. And it’s more profitable - you can resell a plot after they want to build something on it for 20-25% more. But now this is too risky: the demand for real estate, and therefore for land, in Europe and the USA is quite small.

Many people who have a certain amount of free money Money, are often faced with the question of whether their investment is profitable. One of simple ways is the acquisition of real estate. Such investment, as a rule, does not require special knowledge and skills. But in light of the economic crisis, many experts question the profitability of such investments. Is it profitable to invest in real estate in today's realities? We will look into how good or bad this is in today’s article.

Benefits of investing money in real estate

Real estate is rightfully considered one of the least risky investment options. Even if it loses value during an economic downturn, these losses will be compensated for in the subsequent recovery phase. Thus, over the long term, real estate generally appreciates in value, and the risk of large depreciation is relatively small.

If we talk about attracting a mortgage, then such an operation will be profitable only if you receive a loan in Russian rubles. It’s better to take it when you can pay at least 50% of the cost with your own funds. Then you can count on the fact that real estate income and inflation will cover the cost of servicing the debt.

Disadvantages of investing in real estate

The property has low liquidity. In case of urgent need, capital can be quickly withdrawn only if the price is significantly reduced in relation to the market average. We are usually talking about at least 10% difference.

Another disadvantage of investing in real estate is high barrier to entry, that is, you need to have a rather large amount of money. This option is not suitable for those who want to invest small capital with the opportunity to make additional investments.

Maintenance of facilities requires costs. If for some period the apartment is not rented out, then the owner bears the net costs associated with paying utility bills.

Exists risk of complete loss of the object due to its destruction, for example by fire. Here you can protect yourself as much as possible by concluding an insurance contract with a company that has a good reputation in the market.

Before concluding a deal, you should make every effort to check the legal purity of the apartment. If the purchase and sale agreement is invalidated in court for any reason, then it can be very difficult to get the money back.

Investing in real estate: what is profitable now?

The easiest way to generate income is buying an apartment and then renting it out. You can buy a small apartment in a promising city, in an area with good infrastructure and transport links. Such housing is always in demand: the income-to-cost ratio for such properties can be very good. The only risk is possible damage to property.

Buying an apartment during the construction phase can bring significant income with its subsequent sale after commissioning. Income will depend on at what stage of construction you invest money: the earlier, the cheaper the purchase will be. This type of investment requires less time investment than renting: you buy an apartment and sell it a few years later. But it carries the risk that the housing will never be completed. As a result, the investor will not only not make a profit, but also suffer significant losses.

A new building can also be rented out profitably, the cost of such an apartment will always be higher than the market average. But at the same time, you need to understand that in most cases the owner will receive an apartment with “bare” walls, and will require a lot of investment to bring it to a good living condition.

Commercial real estate can bring good income, but the choice of object must be approached very carefully. The object must be in such a place and have such specifications to make it as interesting as possible more tenants. In addition, such an investment requires time costs associated with maintaining the facility. These functions can be transferred to a management company, but then the profitability of the property will decrease.

The question deserves special attention investing in foreign real estate. This type of purchase requires the most preparation. If you do not have a good understanding of the real estate market in individual countries, as well as good legal knowledge, then it is better to turn to professionals who specialize in this. When the main purpose of the purchase is to rent out, then, first of all, you should pay attention to cities that are located on the sea or ocean coasts. Cities with high business activity have also always been considered promising.

Thus, investing in real estate is a good option for those who have considerable capital, are ready for a long-term investment and the fact that it will not be possible to withdraw funds quickly without significant losses. In addition, such an investment requires at least minimal knowledge about the state of the market when it comes to rental housing. When we're talking about about commercial real estate or housing abroad, the operation will require careful study and the involvement of specialists. This will allow you to minimize risks and get the maximum possible income in modern economic conditions.

If you decide to conduct a short survey among your friends, acquaintances and relatives who do not have knowledge and experience in investing, asking them the question: “ What do you think is the best way to invest money?", then most likely 90% of them will answer: " Real estate».

People like investing in real estate because of its simplicity and reliability. They see around them living examples of making a profit: someone sold an apartment they inherited, someone converted an apartment on the ground floor into commercial real estate and rents it out for offices.

But this is the opinion of people who do not understand investing. Now let's look at this method of investing money from the point of view of an experienced investor.

Making money on real estate: renting or selling?

There are only 2 types of earnings in real estate:

Sale. Speculative income: bought cheaper, sold more expensive.
Rent. Leasing an object for long-term or short-term rent.

Speculative income on real estate.

There is an opinion that real estate prices are always rising, so if you buy a property now, then after a while it can be sold for more. But in reality the price will not necessarily go up.

Dynamics of the price per square meter of residential real estate in Moscow in rubles.

The graph shows that over the past few years the price of one square meter in Moscow in rubles has increased slightly. And if we look at the statistics in dollars, we will see that it has become much cheaper. This means that those who invested in Russian real estate in foreign currency recorded a loss by 2016.

Dynamics of the price per square meter of residential real estate in Moscow in dollars.

In general, there is a type of real estate that depreciates the least - this is economy class housing. The demand for such properties is always high, even during a crisis, when luxury real estate becomes cheaper.

Therefore, investors prefer to buy properties below market value, and then sell them as quickly as possible at the market price.

Investments in real estate and income from rentals.

This method of making money on real estate is very popular. People buy apartments or offices, rent them out and receive passive income.

But in reality it turns out to be not as profitable as they think. For example, the average return on long-term investment in residential real estate ranges from 6% to 10% per year.

Therefore, people investing in residential real estate try to increase their profitability to 30-40% per year using the following methods: choosing the location of the property wisely, buying real estate cheaper than the market, and using hacks that help increase income from one property.

For example, real estate prices in Moscow and St. Petersburg are so inflated that with a long-term lease of the purchased property, you can get about 6% per annum. But as soon as you go to the region, the ratio “property price/rental cost” becomes more profitable for the investor. You can already earn up to 10% per annum from a property in the region.

We will talk about other methods below.

How to buy cheap? Profitable investment in real estate.

No repairs.

Objects without renovation, or renovations that have not been done since the time of Brezhnev, are cheaper. It turns out that, for example, it is more profitable to take a “bare” apartment and make “investor” renovations in it than to buy a renovated apartment.

The apartment is not renovated.

Many people prefer to do repairs on such objects themselves, thus saving even more money.

New buildings.

You can buy an object in a house under construction at a price 30% below the market price. Such objects can either be sold after delivery, receiving a profit of up to 1/3 of the initial investment, or they can be rented out.

Apartment building under construction.

Unfinished.

I think, moving around your city, you often see objects whose construction has been frozen. The reasons may be different: money ran out, more profitable projects appeared, disagreements appeared among the owners, etc.

Unfinished property.

Often such suspended objects are dead weight for owners who would not mind selling them, even at a very low price. Therefore, you can buy such real estate and complete it yourself.

Confiscated and pledged real estate.

Banks often confiscate debtors' assets and then sell them at a reduced price. Such assets include not only cars and other equipment, but also real estate.

Since the bank needs to sell the property as quickly as possible in order to recover the funds spent on an unscrupulous borrower, the price is set below the market price. Anyone can buy such real estate.

5 hacks for investing in real estate.

Divide and rule.

One of the most common strategies to increase profitability lately is to break one property into smaller ones and sell each of them separately. This makes it much more profitable.

For example, often one one-room apartment is turned into two studios, which increases income by 50-70%. It turns out that when entering the door from the entrance, a person finds himself in a vestibule in which there are doors to two studios.

This method is becoming very widespread, so companies are being created that specialize in such redevelopment. They help create several bathrooms and remodel.

Studio apartment.

Cottages and townhouses are divided into studios using the same principle. After conversion, they begin to look like hostels or guest houses. This format is very popular among tenants because it allows them to save on housing costs.

The same can be done with commercial real estate. Often, facility owners divide a large space into several small offices. As a result, it turns out that renting out several small offices is more profitable than one large one.

But this method also has a disadvantage, which is that you will have to look for more tenants.

Extensions and extensions.

People who are professional real estate investors understand that every square meter needs to be used. And with the help of extensions and extensions, you can increase the footage of the object.

Extension in a residential building.

You can often see how apartment owners combine a room with a balcony or break down the partitions between the room and the kitchen, thus gaining additional square meters.

Sublease.

There are several strategies for making money from real estate that is not yours. You can rent residential property for a long term and rent it out for shorter periods. For example, rent an apartment for a long term and rent it out daily. With a good load, you can recoup the rental and make a profit.

The same principle can be applied to commercial real estate. For example, you can rent an office for a long period of time and rent it out in the “office by the hour” format.

From residential to non-residential and back.

It often happens that some objects are not profitable to rent out for their intended purpose. Therefore, they are transferred from residential to non-residential and back.

For example, it is sometimes more profitable to convert an apartment on the ground floor in a disadvantaged area into non-residential premises and rent it out as an office to entrepreneurs.

A common case of converting a non-residential property into a residential one is the creation of hostels and hotels from various types commercial objects.

Construction from scratch.

Instead of buying an already built property, you can invest money in real estate construction. At home by Canadian technology with the help of SIP panels they are built quickly and inexpensively.

Construction of houses and SIP panels.

Therefore, you can buy or take a long-term lease of land, build an object on it and sell it or rent it out.

Where can I get money to buy real estate?

Since all construction and investment in real estate is mainly carried out with borrowed funds, an unusual situation emerges. ordinary person painting. It turns out that those who have the most debt earn the most in this area.

Just remember Donald Trump, who, being one of the richest people in the world, had billions of dollars in debt to creditors.

Credit.

One way to get money is to go to a bank. To purchase an apartment, you can take out a mortgage loan at 15-20% per annum. It turns out that to purchase a residential property you will need to collect only 10-20% of its cost. For example, if an apartment in a new building costs 1,000,000 rubles, then you will need to find about 150,000 rubles, which is a relatively small amount.

Loan

Borrowing money from friends, acquaintances or relatives to purchase real estate is easier than for most other needs. Because they understand that this is one of the least risky ways to invest money.

Investors.

There are many people around who have savings, but who do not know where to invest them. Invite them to invest money in real estate. You can invest part of your money, receiving a proportional return, or take a percentage of the investor's asset management.

Co-investment.

If you don’t have enough money and don’t want to go into debt, then you can find investment partners. Thus, by collecting more people, you will need to invest a smaller amount. Of course, the income will also be low, but the risks are minimal.

I also see attempts to create investment platforms for investing in real estate. Here is one of such sites: Rusinvestproject.ru. This type of investment is common in the West, and, I hope, will soon come to us.

Investments in commercial real estate.

Commercial real estate includes office, warehouse, retail premises, etc.

This type of investment is unlikely to be suitable for beginners due to its complexity. After all, when renting out objects, you will need to register entity, conclude agreements with tenants, conduct Accounting and report to the tax office.

If you still decide to choose commercial real estate, then remember that, firstly, it is less liquid than residential, and, secondly, it is always easier to find tenants for small premises than for large ones.

Investments in residential real estate.

This type includes apartments, cottages, townhouses, guest houses, country houses, hostels, etc. This is one of the most common ways of investing.

Several high-yield options:

Rent an apartment daily.
Break up the apartment into a studio and rent it out long-term. This type of housing is popular among young people and students.
Hand over Vacation home or a dacha for lovers of secluded relaxation.
Rent a guest house. Divide a townhouse into a studio and move people of the same age group into it.
Build and rent out bungalows in a resort area for vacationers.

Investments in foreign real estate.

Of course, due to the depreciation of the national currency and the deterioration of living standards, investors want to receive money in more stable currencies. Therefore, many of them are looking towards buying foreign real estate.

In most countries in which the purchase of properties is being considered, income levels are higher than in the countries of the former CIS, and real estate prices are not so inflated. Therefore, the ratio “property price/rental cost” is more profitable for making money on real estate.

The most common countries for purchasing real estate are Iskania, Bulgaria, France, Germany, Greece, and Portugal.

Real estate mutual funds.

One way to invest in real estate is to invest in real estate mutual funds. These are closed-end mutual funds that specialize in real estate.

In fact, this type of investment is low-yield. In addition, when purchasing shares, you will not be able to withdraw money until the end of the investment period. Usually this is about 5 years.

Thus, although this type of investment is highly reliable, it is also long-term and low-yielding.

Risks of investing in real estate.

Although this type of investment is considered one of the most reliable, an investor should still know what risks may await him.

In each individual case, an investor may stumble upon different pitfalls. For example, when purchasing real estate in a new building, construction may be frozen or the property may not be delivered on time. In addition, during construction, the price of real estate in a given area may fall (for example, the cancellation of the construction of a metro station, or the opening of a production facility nearby, etc.).

Therefore, you cannot believe the popular rumor that real estate prices are always rising. As the latest crisis showed, prices can also fall.

Real estate has been one of the most common areas of investment for many years. This can be explained by the fact that real estate, especially residential, is popular even during a downturn in the economy. It provides a basic human need - a roof over one's head. But many are stopped by the rather high barrier to entry into such investing: having even a few hundred thousand rubles in hand, it is quite difficult to purchase an object. Therefore, many people prefer bank deposits, although they do not bring good income. Is it possible to start investing in real estate with a small amount of money? We'll talk about this today.

Pros and cons of investing in real estate

Like any investment, this type of investment has its advantages and disadvantages. A novice investor should understand them well.

Among the main advantages are the following:

the risk of complete depreciation approaches zero;
in the long term, property prices tend to rise;
does not require constant time investment.

Among the disadvantages are the following:

low liquidity. If you need to quickly withdraw funds, you will have to significantly reduce the price, which will most likely lead to losses;
owning real estate involves certain expenses (taxes, repairs, etc.);
high barrier to entry.

Basic methods of investing

An investor can make money on real estate in two main ways:

purchasing an object and then renting it out;
purchasing an object for subsequent resale.

A novice investor should pay attention to economy-class residential real estate. Besides what she requires smallest size investments, the likelihood of losing funds on such objects is minimal.

How to start investing in real estate from scratch?

It is worth immediately noting that starting “from scratch”, in the literal sense of this phrase, of course will not work. But contrary to popular belief, having millions is not necessary. Therefore, you can invest in real estate even with small capital.

We invest in a new building

One of the common ways to invest in housing with limited financial resources is to buy an apartment at the foundation stage or in the initial stages of construction. At this stage, developers are ready to offer the lowest prices. The sooner the equity participation agreement is concluded, the cheaper the cost of the apartment will be..

Such an investment has a significant drawback - the risk that the house will never be put into operation. Therefore, it is necessary to pay special attention to the choice of a developer company.

You can go another way, which has a double advantage for the investor - obtaining a mortgage from a bank to purchase an apartment from an accredited developer. Very often, as part of partnership agreements between a bank and a construction company, clients are offered quite interesting mortgage rates. You will only need money to pay for the down payment and expenses. The second advantage: banks very carefully check the developers whose properties they finance, so the risk of not waiting for your apartment is significantly reduced.

Such an investment for a novice investor also has its disadvantages. You can talk about profit no earlier than after a few months, but this is rare. If an investor plans to resell, then it is necessary to take into account the existence of a loan agreement. This often narrows the circle of potential buyers, since the transaction has a number of features.

It will not be possible to rent out an apartment quickly, even if the house is completed quickly. It will take time and, again, money to carry out repair work. Therefore, this option is suitable for investors who are willing to wait a long time for the first income.

Buying an apartment on the secondary market

With minimal capital, one of the best investment options is to take out a mortgage from a bank. As already mentioned, it is better to choose an inexpensive apartment with a small area. It is much easier to get a loan for such an object.

To start receiving income as early as possible, you should choose a property that will be in good demand among tenants. Therefore, it is worth buying housing in a place with good infrastructure and transport links. You don’t need to spend a lot of money on repairs; a good cosmetic one is enough.

One of the ways to increase income from an apartment- this is surrendering it to short term, daily. Such apartments are rented by people who come on a business trip or on vacation. Therefore, if an investor plans to use housing in this way, then he needs to select a property in the city center. This type of activity requires much more time from the investor, since it is necessary to contact tenants almost every day and maintain the housing in proper condition.

If it is possible to purchase an apartment larger than a one-room one, then it can be rented out room by room. It is worth paying attention to housing that was previously communal, its layout is more suitable for such purposes.

When applying for a mortgage, you must be prepared for the fact that all income will be used to pay off the monthly loan payment. Tangible income is possible only after closing the mortgage. But, if we consider that at the initial stage the investor invested a minimum amount of his own money, then such an investment is quite profitable.

Buying a room

This method is the least expensive. But if we are talking about buying for investment purposes and not for personal use, this is not the most the best option . First of all, taking out a loan to buy a room is difficult, since not every bank provides such loans. Further problems are possible when renting, since the owners of the remaining area of the apartment may prevent outsiders from moving in if the housing was not previously communal.

Buying a mortgaged apartment

One option for purchasing relatively cheap housing is to purchase real estate that is pledged to a bank. Moreover, it can be sold either by the borrower himself on his own initiative, or by the bank through the procedure of forced collection and sale.

The first option is usually more expensive than the second, but also carries fewer risks for the buyer. The loan may not even be problematic, the borrower just wants to sell the property for personal reasons. The transaction takes place as usual, except that the apartment has an encumbrance, which the bank removes after the buyer and seller have settled and the debt has been repaid. If there is no cash and you have to resort to a mortgage, then it can be arranged in the same bank by assigning the debt.

The second option carries more risks. The apartments of borrowers who do not negotiate with the bank are most often sold through auctions. After paying for the purchase, a problem may arise with the former owners, who may in every possible way prevent their eviction.

Another significant drawback is that it is almost impossible to view such an apartment before purchasing. The feasibility of the purchase can be assessed only by the address, number of rooms, and area of the apartment.

After the purchase, the buyer will have to independently remove the encumbrance.

Thus, you can start investing in real estate even if the available amount of money is not enough to purchase the property. The main thing is to correctly weigh the risks and potential benefits.