Is it a good investment to buy a home, or wasting ten to twenty or fifty millions on a single purchase? Interesting American examples have been analyzed by Forbes and also how these ideas work in the home. From these, let us highlight the most interesting facts.
Equity and real estate investing head to head
According to an analysis in the US, a stock will outperform a home if it cannot be rented at an average rental rate of 7 percent. That is, if we do not sell our property, we will not win compared to the stock market.
It is good to know that over the past two years, the Hungarian stock market has moved after the slump and higher returns have been achieved.
It was possible to gain a lot with the rise in the home price with a timely purchase of real estate, currently leading 29-16 percent compared to real estate.
Of course, stocks only become ‘gold’ in the hands of the pros, while the rules on the real estate market are a little simpler, meaning it’s easier to make a profit here. It is no accident that the popularity of home loans has increased tremendously.
It is worth buying in the upcoming parts
The highest yields are not achieved in expensive districts. It is cheaper to buy and sell there, which will be a hit in the near future, especially in suburban areas near the center.
Followers of urban rehabilitation programs in America and Hungary invest the highest returns.
Let’s shop in a nice street
The name is obligatory: in America, homes that are on cool streets are worth a lot more, and instead of ‘street’ they are more elegant, more ‘way’ or ‘place’. The name referring to the proximity of water (eg Ocean Drive) is the winner.
The phenomenon works for us too: 46% more expensive is a real estate property with the same attribute, with a street name in its title , not a street.
But do not renovate the kitchen
Wanted to sell a flat or house that is a little flat and want to sell it for a better price? By investing in bathroom renovation, we can increase the price, which has a great impact on our customers. However, replacing the kitchen furniture does not bring much profit, only half of the amount spent comes in revenue.
Buyers, when they buy a property to be renovated, prefer to remodel themselves rather than pay for partial changes that do not reflect their taste.