Whether really to earn a lot of money on rent?
Good afternoon, dear readers! I did not update record long ago on the blog and therefore today, in this small note, I am going to share interesting supervision concerning real estate and rent business related. In - the first should be told at once that it is rather specific type of business, owing to some circumstances, but rather widespread and many-sided. In - the second, it is easy to understand all details and it is possible to ensure a worthy living wage easily.
So, so it developed that for many, presently, the real estate is necessary, but inaccessible purchase owing to the high cost. The majority of those who consider option of acquisition of housing do it generally for itself, but not for the purpose of commission of investments and an investment of temporarily available funds.
So for example, from personal observations, I can tell that in a multiroom house under construction, practically always 2/3 apartments will be bought for full-time residence, and about 1/3 - it is generally got for further resale, or leasing by private and small investors. Such situation is observed for a long time, especially in the large cities and demonstrates that all - meanwhile we got used to earn money with hands, but not the head.
Usually large investors do not get to this 1/3 and do not stake on the private sector, trying to acquire real estate with higher level of profitability. Generally they are interested in the commercial sector capable to generate higher income therefore in the large cities many new floor and office space of a different class and level over the last ten years appeared.
But I would like to talk about this business grindings of sight of “room“ investors and to estimate a real possibility of earnings on similar assets to the simple citizen who came to this business from the street - so to say saved a money for several years and it was enclosed in purchase of the small apartment which I plan to hand over. Whether it is real?
In principle, everything is possible! Simply, to make so that it became the business which is not demanding operational management it will be not so easy. In order that, all this did not turn into a headache, and you had a lot of free time and money, in - the first, several real estate objects suitable for leasing, from personal experience - at least 5 - 10 that at the expense of a scale effect it was possible to live and develop further will be required at once. In - the second, the hired managing director who would watch a state and suitability of housing will be required, would organize all processes which in due time would collect a rent, brought it to bank, put on the account, worked with accounts department, with municipal services etc. In - the third, at least, it will be required to establish good relations with local realtors or with management of agencies which would provide good solvent clients and brought the client to “installation“. It is the minimum set of requirements.
Only money from delivery of several objects, but not from one will be able to provide free life. Therefore all listed points are obligatory if from this project to create real profitable business which and can be sold further to good people.
Well and if to speak about one apartment which is planned to be handed over, then to live in grand style on the received money it will hardly turn out, it is necessary to be engaged in similar things independently and to spend on it practically all the time. Unfortunately, having available you will hardly manage to be away on vacation only one object for half a year, year, to live and not to think freely of money. Everything that can give you one object is only the income comparable to a salary of the middle manager and the minimum quantity of free time, but no more.
Let`s count if to calculate an average rate and to take for rent of the one-room apartment 25 000 rubles for the monthly period, then in a year on this business it is possible to receive exactly 300 000 rubles, But … we will count account part:
- Utility payments (we will take equal 3 000 rub with water, light, the Internet, communication), there are 264 000.
- The Insurance (a full package - at least 10 thousand rubles) there are 254 000.
- Obligatory small repair on the end of the year (10 thousand rub), remains to 244 000.
- The Cost of your time (1 day a month is admissible) 1 250 rub x 12 months = 15 000, remains to 229 000.
- Surely taxes (tax on the income physical. persons at the rate of 13%) - there are (229 000 - 13%) = 199 230 rubles.
If to divide the remained sum for 12 months and not to consider other expenses, then actually it will turn out that in practice 25 000 turn into 16 600 rubles with which it is already more difficult to plan something. As a rule, at the first stage of it happens enough to accumulate experience and to start business scaling. Therefore if you wanted long ago, but did not know as well as whether really to earn from rent, I recommend to study for a start attentively all aspects as in practice, this invention appears quite to itself independent business, demanding knowledge and experience.