Many real estate investors overlook some of the most profitable properties because they don't understand how small properties can mean big profits. They believe that only large spaces are better and waste other opportunities. Therefore, if you are going to buy an apartment, we will show you the reasons to invest in small apartments shortly.
Nowadays, people are becoming more aware of the importance of generating constant income to guarantee a flow of money regularly. In this sense, real estate investors know that one of the best types of investment is the purchase of small apartments. Why? Soon, we will tell you.
Reasons to invest in small apartments.
1. The acquisition cost is lower
The cost of acquiring a house will always be much higher than that of a small apartment. Even
the cost of some houses could be enough to buy two apartments and get more income.
Therefore, if you still do not have the sum necessary to acquire a house, a penthouse or a
duplex, or do not want to risk investing so much without being sure that you will recover your
money and generate profits, investing in a small apartment dimension may be your best option.
2. You will have less expenses
Being a much smaller space, unlike other property types, your maintenance costs also
decrease. If you plan to buy an apartment to rent, your maintenance and repair expenses will be less if the tenant is not very careful.
However, it is always advisable to choose the tenant well to avoid this type of expense as much
as possible. Let him know the rules once he moves into the property.
It may interest you: 6 steps to rent your apartment.
3. They have a better location
Experts always recommend that when investing, not only the price of the property should be considered, but also its market value. In general, houses that are located in very peripheral areas and that are very large tend to be difficult to rent. Therefore, it is not a good idea to invest in them. On the other hand, buying new apartments between 30 and 100 m² in a privileged area of the city, such as Miraflores or San Isidro, is making a safe bet since it is very complex for them to lose value. In addition, apartments well located in central areas, with a large movement of people, safe places surrounded by commercial and entertainment establishments, are easily rented and more profitable than any similar property outside the city center. If you intend to rent a new apartment, remember to pay special attention to this point. Keep in mind that people often look for apartments because of the advantages of their location, so do your research and analyze the area in which it is located and make sure you can generate more profit.
4. They are safer to live These types of apartments are usually safer.
Most of these are located in modern buildings, which, in addition to being in a good location, have a security system and people's entry control. This makes those looking to rent a home perceive them as safer, this being an essential factor in their decision-making.
5. They have a higher rate of return.
Nowadays, there are more people who, when looking to rent a home, prefer an apartment, either because they are people looking to become independent, couples, students, small families, etc. This is because they do not need much space and are looking for something cheaper. For this reason, you can be sure that there will always be people interested in renting your apartment and, therefore, be sure that you will make a profit on your investment. Similarly, remember that the rent per square meter is higher, so you can get more profitability if you decide to rent it.
For which people are small apartments ideal?
Investors acquire small apartments because of their profitability and high demand since they are transitional properties where tenants do not have to worry about dealing with long-term contracts.
In general, the ideal people to access this lease are young professionals with job stability, single people, university students from other cities, people who travel to the city for work, foreigners, and executives.
But, investing in small apartments is not just for real estate investors. Any person who, due to its characteristics, can live in it and all those who have money destined for their future and still do not know what to invest in have a great option in the purchase of small apartments since the possibility of obtaining profitability is very high