Say first of all that although investment in real estate has historically been more profitable even than the actions, the fact is that it is a type of investment that requires more capital in most of its forms.
But first of all, what is not investing in real estate?
Of course it is not buying a house asking for a mortgage in the hope that the price of the property will rise. That is strangulation financially, although it is possible that the property can be rented for a monthly price higher than the payment of the mortgage. Difficult, but possible. Otherwise, this type of investment risk would be considered to have acquired a debt.
Real estate investment
- Investment in residential real estate.
They are properties like houses, townhouses, apartments or apartment buildings, where we have the possibility to charge a tenant the stipulated amount during the duration of the contract.
- Investment in commercial real estate.
Mainly they are office buildings and commercial premises. In business buildings, we are more likely to be financed by the bank, because the idea is to rent the different offices and plants to other companies or businesses.
- Investments in industrial real estate.
From industrial warehouses in polygons (bad business at the moment) to all types of soils destined for the industrial area.
- Investments in shopping centers.
This type of investment does require a lot of capital. And there is a bubble of shopping centers in most cities. I think we do not have to explain what it is, since you have seen that a shopping center rents out all the spaces for shops, coffee shops, cinema and big food chains. Also nightclubs. Often you already see some shopping centers with too many spaces without renting. And those growing closed spaces show that they probably are not making all the money they should.
- Mixed investment in real estate.
Here we would go to the real billionaires, because this investment is practically all of the above but together. For example, the project of Dubai, where it is building a whole city intelligent and heated incorporating the world’s largest shopping mall.
- Invest in real estate through actions.
Obviously, we can invest in shares of real estate, and as the real estate market recovers, the shares would increase in value, in addition to the payment of dividends, should they be distributed.