Which is More Profitable?

[Davidvictorson]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

[EL MOHA]

Both are definitely profitable and depends on the the kind of investor you’re, Selling of the apartment will definitely bring you the immediate profits you want, and also the rental proceedings will also brings it own profit but it definitely takes a lot of time and also needs extra work. If you ask me i will say the rental is even more profitable over a long period of time if at all the owner pays better attention to maximum maintenance of the property. A quick sale has its profit also but it is minimal although doesn’t requires extra work or waiting for long before realizing your profits.

If you’re just a serial investor building and selling is the best option to me but if you’re not and you’re looking for an investment with annually income then the rental way is much better. But both are profitable

[Agbamoni]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

First of all, am not a financial advisor i will only share my thoughts to the best of my knowledge here

In a scenario where you build an apartment and wish to recoup your money back. Renting is one way but just know it is a slow process. But it is in an environment or city where the value of property keeps climbing (price of rent). Then ill think it will be the best way because it will come to a time where in just a year you will get the money back used in constructing the apartment. Selling is another way, but it is a quick way, you instantly get your profit once you sell it.

However, the final all depends on you. If you want a long-term financial stream of money, then go for long term as the property will remain till the day you choose to sell it. I would any day prefer renting it out than selling it asap.

[tabas]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

First, what your plans are? are you a build-to-sell guy or you have built that apartment for you to have it as a rental property and earn a passive income? If the area is good then I'm not going to sell it. I'll use it for as long as I can and until I have it passed onto to my offspring just to have it rented and earn passively from it. But with that option, it is going to take a while before you ROI. Compared to building and selling it, you'll have it back in a shorter period. So, get back to the first question, what you really are and what's your plan?

[Fiatless]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

Anyone can be profitable. It all depends on your business plans, the location, and the offer you get from prospective buyers. If you intend to spread your profit for a long period, renting the apartment will be the best. But selling it outright will bring instant profit. If the building is located in a highly sort area or where rents are high, renting it will bring more returns than selling. Areas with a high population of tourists will bring more profit from renting than instant sales.

There are cases when a rich individual or organization offers so much money for a property. I have seen a politician offer property owners around his house huge amount for their properties because he wants to expand his estate. In such a case, outright sale might be the most profitable option.

[Dave1]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

I'm not expert on this, but logic might tell that it's better to just rent it out, as least you have passive income for as long as you are alive. And it could create more money to you and for generations, hence generational wealth.

And maybe in just about 2-4 years of having it rented, you might have recoup already and then again, what's next in the next decade or so will be your profit for you and your family. Doesn't make sense to sell it unless you are in the business of flipping house for profits. But if you are a investors then for me, just rent it out will be the best option.

[Vod]

You can always make more money renting than selling.   After all, you are providing a service.  If you are not interested in dealing with tenants, you can hire a rental agency to take care of everything for you.

[reagansimms]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

If you ask Which is More Profitable from the investment made in building a residential apartment building, then both are mutually beneficial. Investors have made considerations before turning their money into an apartment building, of course profit is their main target.
You can sell it immediately when the apartment is ready to live in, then look for another strategic location to build a new building. If you want to make a profit in the long term, renting it out will be the most valuable investment for your old age. Apart from being able to get consistent results every month, the price will also increase in the future.

[mu_enrico]

The profit lies within your expertise actually since selling or renting buildings have different skills, connections, strategies, etc. If you want to sell, you should have access to wealthy people or with financing party, but if you want to do rental business, you should be able to deal with maintenance and other stuff related to tenant management. Anyways, let's say if you have money and build/buy some properties for "investment," IMO just sell it since renting means more work to do. The rental agency suggested by @Vod might be a good idea, but I don't have any experience dealing with them.

[Reatim]

Personally I think it would depend on your own goals and priorities.

If you want immediate money then just sell the property however you need to consider that you are risking selling the property when its value might not be much appreciated yet.

What I really like with renting is there’s regular income but it’s another headache trying to maintain the property and the renters. It is all up to you and what kind of character you have.

[avp2306]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

I'm struggling to understand your question but I assume what you mean is build and sell? But if you mean that it is, then I can assume that this is more profitable since you can immediately get the capital and the profit you spent once you successfully got a buyer and this is really profitable business if you plan to do it since for sure there are lots of people seeking to buy their brand new home especially if you do it on places where good developments happening.

Unlike on renting where it will take a lot of years before you get your capital and you can only got from that option is passive income which your apartments could generate.

If you want passive then go with rental properties option. But if you want to hit more bigger market then do build and sell since there would be a chance that your business in this model will grow more bigger. But you need huge capital with this.

[SmartGold01]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

Now let me just trying my best with my small experience then, let me start with renting; in Renting the profits minimal like it doesn't have a stable and sound profits, reason is that in rentage when you spent a total amount of 50M to construct a building after which placed it on rentage it could cost you a total of 20-30 years to cover the cost spent in that building depending on the amount fixed at annually / Quarterly (Monthly/yearly), maybe it could around 500k per apartment then multiple by total apartment in that building, let say 5 apartment... 500,000 x 5 equal to 2,500,000 per year, then we subject it to the total amount spent in constructing the building.. 50,000,000 / 2,500,000 = 20.

Meaning it would take you 20 years to recover the amount spent in constructing a building with 5 apartment, after which your profits continues and it's a lifetime investment, but this depending on your age. If you are already 50 year old when you have that building, before you recover the amount it could cost you a total of 70 years which you are already weak (50 age + 20 years). So the investment is for your children and not yours.

Now, selling a building, if you spent 50m in that build you may decides to sell it at 70m-100m meaning you made your profits instantly without having to wait for lifetime to recover your profits, and off course you can always construct another building to sell, maybe within 20 years of your life have succeeded making 30m x 20 =600m within 20 years.

In Summary selling a building is more profitable than rentage.
I don't know if this is actually what you mean or not

[Agbamoni]

Personally I think it would depend on your own goals and priorities.

If you want immediate money then just sell the property however you need to consider that you are risking selling the property when its value might not be much appreciated yet.

What I really like with renting is there’s regular income but it’s another headache trying to maintain the property and the renters. It is all up to you and what kind of character you have.

Do you know you can sell that property and then think of building another one in the next two years and you get to find out that it will take you times 2 of the money spent on building that first one to make this new one? Unless there are so many properties that were built then you can think of selling them gradually before one or two years you have gained enough from it.

Any day I'd prefer renting. Try equating renting to be a long-term bitcoin investment and then selling to be trading. Which do you think has more potential return? Renting an apartment can last for a lifetime, only just maintenance will go on and you can still choose to sell it if you want.

[Alpha Marine]

I think both are profitable and it depends on what you're looking for. The prices of both depends on a lot of things which include the location of the building, the type of building and how much furnishing you have done in the building.
Giving out a house for rent is like investing for the long term. You'll always have a source of income even till old age, all you have to do is keep renovating the building and keeping it attractive for more potential tenants.
With selling the property, you can get the whole money spent to build and finish the house and your profit, but it's not q continuous payment.

In my opinion, the rent is better because even after death, your next of kin inherits it and continues to get profit out of it.
Selling the building gives your profit faster but renting is a better security, plus, the rents might increase the more the cost of living increases and it also increases with the value of the currency.

[GeorgeJohn]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

A real estate management have different ways of making or recovering any money they spent for real estate, sometimes they purchase their landed property at affordable prices and if they decide not to build any structure in that particular land they will create roads and start selling the lands at high price, secondly if they build structure like houses in their real estate they can decide to sell the houses apartment by apartment, but only ways I know that real estate make profit is by selling of land instead of building houses for rents.

[passwordnow]

You can always make more money renting than selling.   After all, you are providing a service.  If you are not interested in dealing with tenants, you can hire a rental agency to take care of everything for you.

I agree, 100%.
While it looks like someone is able to make a profit margin from selling it. But it's not always easy to dispose a property and have your margins, location is still the biggest factor there. And with that case, you look at the real estate moguls, they're not going to sell their properties if they're in the prime location. They make their properties as their personal slave and make their money for them and for the next generation of their families.

With the apps like airbnb today and any other similar services, you're not going to be problematic with the clients. All you have to do is just be active on every platforms where you can post that property or apartment of yours. I've got friends that even bought units and apartments and have it rented through airbnb. This is how you earn while sleeping as W.Buffett said.

[Marvell1]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

That will depend on you, if you want to recover capital quickly and have another business idea, selling is the solution, but if you want to create a passive income source, renting is the choice. 

If it were me, I would lean towards generating passive income by renting as it will be beneficial in the long run as you can both increase your income and increase the value of your real estate over time. Not to mention buying real estate with a good location is not easy, so you need to consider carefully before selling. Selling real estate is easy, but buying land with a similar geographical location or potential is not easy.

[Darker45]

Basically, it's more profitable to rent it out. But the ROI will only start flowing in after several years. If you include the piece of land, it will take more years for you to start receiving returns. However, that's going to be passive and steady income. If you prefer money that you don't work for day in and day out and continuously every month, it's the better choice. This is my cup of tea.

Selling is one time. You won't get regular profit from it. But if you prefer quick profit, it's going to be the better choice. Let's say you build an apartment for 6 months, you can get back everything that you spent plus a nice profit as quickly as the 7th month. But there's no more profit after that. I don't like this.

There's going to be a third option, better than the other two, the kind of business that some of the richest in my country are involved in. It's constantly rolling the money. You build and sell and use the money to build again and then sell and then look for another land to build on and sell again and so on. That requires commitment, however. It involves bigger tasks. This isn't the kind of business that a lazy man like me wants.

[Samlucky O]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

Everything lies on you. It's just like trading of bitcoin vs buying bitcoin and HODl. Those who build apartment and sale instantly are like bitcoin traders, while those that built and rent out their apartment for long time are like bitcoin HODLers, so you can answer the questions yourself from my explanation. For me I prefer building and renting it out as a form of business to generate a passive income or annual income and it can be invested in bitcoin as lump sum annually and it becomes you retirement savings. One important thing you should know is that not everyone that has money to build house and sell to recoup their Money, although according to your statement It talk about those who are into real estate and such is only for multi millionaire and not for all. If such person has that amount to build and sell it's fine, but if he doesn't have that much, he can just build for rent to recoup his money.

[Coin_trader]

There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?

Selling it will give the most profit out of it because you can lump sum the potential profit so that you can rollover it to the next investment without paying for maintenance cost for the building if you decided to rent it out for apartment.

But other people think for sustainability that’s why many preferred the long shot since they don’t want to take risk anymore for finding another opportunity to acquire or construct new building.

For me selling since I can use the money to other business that will generate more profit.