It is profitable to buy office real estate in the city center. Its payback period is much shorter than the payback period for apartments in new buildings and the secondary market. In general, it is profitable to invest in real estate that can pay off in 7 years.
Various segments of the real estate market can become a source of income. We are talking about both ready-made objects and residential and commercial, as well as land plots. Today, the greatest demand is not for those objects for which prices are rising, but those that can be rented out and have a stable income from this. The most attractive in this respect are objects of affordable regional real estate, since you can get more income from their lease. It is more profitable to purchase objects under construction on the primary market, even in spite of the risks.
Today, experts predict a large influx of investments in warehouses, office real estate and hotels. Today is the best time for investors wishing to invest in commercial real estate: prices have been reduced, there are few buyers, therefore, given the revival of the commercial real estate market, it will be possible to profitably sell or lease it.
How to calculate the return on commercial real estate
Commercial real estate is represented by retail and office space. Retail real estate is more attractive for investment, but its cost is beyond the means of most people, moreover, the idle time between the change of tenants can reach 9 months. That is, this is exactly how much time it will take for a new tenant to renovate the premises to suit the specifics of their business. Office real estate purchased in the center of the megalopolis for 15 million rubles with a total area of 100 m² can be rented out for 100,000 rubles per month, then its payback will be 12.5 years.
12 years is a considerable period, but the payback period for a two-room apartment in a new panel building will reach 18 years or more, since the owner will still have to pay taxes for renting, make cosmetic repairs for his money and pay for utilities during the period of downtime between the change of tenants … The payback period for a 3-room apartment in a monolithic building will be 20 years, for a 2-room apartment in Stalin's era - 18 years. It is most profitable to invest in a one-room apartment in a panel house: its payback will be about 15 years with minimal costs for cosmetic repairs and downtime for less than 14 days.
What is more profitable
It can be concluded that office real estate is the most attractive in terms of investment, since 1 m² is more expensive than 1 m² of residential property, and pays off faster. While the owner of the apartment is forced to spend money on repairs and purchase of furniture, office space is rented out without it, and cosmetic repairs are carried out at the expense of the tenant. In general, a good indicator of real estate payback is 7 years, if this figure is higher, then it is unprofitable to invest in such real estate.
