The experience of this pandemic has led us to think whether the strengths of the home where we live have really changed at this time. Now we are looking for more spaces, the possibility of having a terrace or a garden, having more rooms, being able to be close to nature, in short, our priorities have changed.
This is leading many people to seek their usual residences in the outskirts of large capitals and even to change their second residence for their first residence. The indicators show us this trend, which seems greater the longer this horrible pandemic that we are experiencing continues.
The consequence of this decision is that the first residence in the center of the capital will be left empty and, therefore, the owner has to think about what to do with it:
● First choice. Just leave it empty, but it would be a shame to have a high-value asset without use.
● Another option is to sell it and thus recover the profitability of the investment made over the years to invest this capital in other financial products or use the capital to acquire the new home.
● The third option, and the most used, is to opt for a long-term rental and thus collect a monthly return.
● But there is another very profitable option, as long as the location is of tourist interest, and that is to convert the house into a suite for tourist use. Depending on the home and the investment to be made, it can be converted into double rooms with shared bathroom or luxury suite rooms, highly demanded by high-level tourists, as long as the area is prime.
The net profitability of renting long-term and renting as a luxury suite is unmatched, in conservative scenarios it could triple. Obviously we cannot contemplate the current scenario without tourists, since it is a specific situation, and we must think about next year with the majority of society already vaccinated and with an explosion in tourism after the restrictions experienced in the last two years.
In this case, the only thing that would be needed would be a significant investment in the reform, which would be even greater if the house is to be converted into luxury suites. This investment can be offered by participatory financing platforms, such as icrowdhouse, since there are many retail investors willing to enjoy an optimal net income.
In order to carry out this operation, the house is provided in a legal entity and a capital increase is made of the total value of the reform and the expenses of the operation. It is what in crowdfunding we call the financing round. In this way, the owner has partners in his SL and shares the% of net profitability according to the percentage of shares he has. With the capital to be reformed and a reference developer to execute the project, also hiring the rental and exploitation management, we can now begin to receive a return on capital. That is, in four or eight months we can already receive monthly income.
A round operation! Everyone wins and you can maximize the profitability of the asset without having to sell it.