Profit is the main goal for any investor.

Entrepreneurs, businessmen, and investors use the return on investment as an indication of their investment’s success. 

The profit doesn’t come only from the ROI, but also come for capital appreciation which refers to the portion of an investment where the gains in the market price exceed the original investment’s purchase price or cost basis.

There are 2 ways to make a profit in real estate.

1. Capital appreciation, which occurs when the value of your property gets higher with time,
2. and return on investment, the profit you make through short or long term renting.

You can have both of them, but it is not an easy task to make a profitable real estate business without making the right buying decision in the first place. 

For example, if your intention was to buy a property and list it for a short term business model, then the property you buy should be ready and in a hot location that’s near to touristic destinations, easy transportation, and should diffidently be fully furnished.  

In contrast, long-term rentals have different criteria. In this case, it’s important to be near certain amenities such as schools, hospitals, and services.

On the other hand, if your intention was to flip houses and make an appreciation on capital, then it’s preferred to look for an off-plan project that has a promising potential. Without freezing your capital and with an easy payment plan. 

The bottom line is, your investment type should be guided by the objective you want to accomplish, and by the audience you are targeting.

At Key Clue Properties, we understand that decision making can be confusing and overwhelming. Specially that it engages the opinion from different people around you.   

We want you to make a better decision, based on facts and numbers, rather than emotions.

That’s why we encourage you to follow the HAP Strategy “Home Acquisition Process” 

Click on the link or the button below to connect with our certified team and start your Home Acquisition Process today.