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Type of investment (income or capital gain)

Investments icrowdhouse

If you are thinking of investing in real estate, we provide you with information on the types of investment so that you can choose the one that best suits your needs.

We have the type of investment that suits you

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Buy, reform or build and sell.

What does it consist of?

Buy of properties below the market price, in areas with a significant growth projection in the short term, and with high demand and ease of sale.

Reform: Improvement of the property to maximize the sale price.

Construction: Project, planning and construction.

Sale: marketing and sale of the property.

Term

Buy to sell: The target term of this investment will vary depending on the project, but will generally be between 6 and 12 months.

Build to sell: The target term of the investment will vary depending on the project, but will generally be between 12 and 24 months.

Dividends

The profit obtained (difference between the investment and the sale price) is distributed as dividends at the close of the operation.

Renta

Buy, reform or build and rent.

What does it consist of?

Purchase of assets:
Conservative strategy: Purchase in profitability, solvent tenant and current contract of at least 3 years of duration (better if they are mandatory), rent levels according to the market (rack-rented). Central locations.
Value-Add: Empty purchase, with possible reform and necessary adaptation, search for a tenant and then sale to finalist investor, or buy to hold in equity (profitability). In the first case it is important to take into account the moment of exit in the market, while the second case offers a good opportunity to remain in equity a quality asset yielding a good annual PER (20 years or less), having created value for the investor.

Reform: Property upgrade to maximize rental price.

Construction: Project, planning and construction.

Rental: stable and long-term recurring rental income.

Term

Buy to rent: The target term of the investment will vary depending on the project, but will generally be around 36 months.

Build to rent: The target term of the investment will vary depending on the project, but will generally be around 48 months.

In both cases, the objective term of the investment will be very marked by the type of rental contract and its duration, which will normally be around 36 months. Investments in residential, will be based on the housing rental contract that can be for habitual residence, seasonal or tourist use. Investments in commercial, industrial or service real estate are based on business premises rental contracts that are usually longer term.
After the term stipulated in the project for the rental, it will be marketed for sale.

Dividends

You will receive the dividends generated by the rentals on a recurring basis as determined in the project (monthly, quarterly ...). In addition to the dividends generated by rents, you will also receive those generated by the capital gain that may be generated when the property is sold.

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