Which is More Profitable?

[Zoomic]

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?

Real estate is an asset and it generates profit overtime making it worth to invest in. You can choose go sell it and still get a good amount of profit because the cost of building materials increases overtime. There are some people who don't believe in rents because it will take a lot of time for them to get the money that they use in building it.

However, i will prefer to rent it out because it is an investment that can generate profit from genertion to generation as long as you don't sell it. It can be passed on to your children.

Just like most members here have already said, it depends on the kind of real estate investor one is. Currently, the world's economy is not smiling and the prices of building materials keep increasing as the day goes by. The cost at which one builds an apartment will definitely not be the cost at which he will build that very design of apartment tomorrow because the price of materials and even labour will go up. If the investor calculates all the cost involved in building a house today and sells that particular house, chances are that he will spend even more building that same house again tomorrow. I am using the current economic situation in my country as a case study.

Except the investor just wants to sell off the house outrightly without any intention of rebuilding, I think renting out the building will generate more returns and is even more profitable than an outright sale.

[dezoel]

Both have good prospects but the returns or profits obtained are not in the near future. But as far as I see especially in my area the prospects for both are still the best investment choices that people make. It takes a lot of capital to build a house so this kind of investment can only be done by people who have enough money.

Real estate is one of the most profitable businesses in the world but as you mentioned, it's not for everyone because only those who have a lot of wealth can get their hands into this business because it requires a large capital for one to start. If you get into real estate with a limited amount, you will barely get good properties and if you don't have good property, you won't have good profit on resale if you are buying and selling, or you won't get good rent if you are willing to rent and get a small amount every month while owning the property.

When we talk about whether renting or selling is better, I would say it depends on each individual and what they want to do. Both have their pros and cons. If someone wants to get some profit on a property they have bought, they would wait for a few months and then sell it at a higher price, but if someone wants to keep the ownership of the property, they would rent it out.

Apart from all other pros and cons, it also depends on where the property exists, whether it's a location that is in-demand and the rates of properties are rising very fast or it's a location where there isn't much development.

[Hyphen(-)]

Just like most members here have already said, it depends on the kind of real estate investor one is. Currently, the world's economy is not smiling and the prices of building materials keep increasing as the day goes by. The cost at which one builds an apartment will definitely not be the cost at which he will build that very design of apartment tomorrow because the price of materials and even labour will go up. If the investor calculates all the cost involved in building a house today and sells that particular house, chances are that he will spend even more building that same house again tomorrow. I am using the current economic situation in my country as a case study.

Except the investor just wants to sell off the house outrightly without any intention of rebuilding, I think renting out the building will generate more returns and is even more profitable than an outright sale.

This current economic situation is actually not favoring almost every sector because of inflation. The cost of everything is going up same as building materials, because of the high cost of leaving and materials, building house is not more profitable if you are building for selling purposes, that is why hotels are becoming more rampant because building a hotel is more profitabe than building a house for rent because the payement will be daily, while an appartment payment will be annually.
In my opinion, I think building a house for sell is good, and also building a hotel is also profitable.
But people that has already invested in real estate in the past will have more profit than people that just invested.

[Rampagoe004]

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?

This time I will share a little opinion with the OP about the most profitable investment in the future. in several reviews you discuss the money involved in real estate and the money spent on building an apartment can be returned by investment, when the money spent on building an apartment is what is called property investment which is very appropriate if you want your money back, one way is to sell the apartment it can also be profitable quickly. I have several ways, if you have an apartment, rent it out for the long term and sell some of it so that you can get 50% of the money back.

[knowngunman]

This current economic situation is actually not favoring almost every sector because of inflation. The cost of everything is going up same as building materials, because of the high cost of leaving and materials, building house is not more profitable if you are building for selling purposes, that is why hotels are becoming more rampant because building a hotel is more profitabe than building a house for rent because the payement will be daily, while an appartment payment will be annually.
In my opinion, I think building a house for sell is good, and also building a hotel is also profitable.
But people that has already invested in real estate in the past will have more profit than people that just invested.

I think this has to do with location and the nature of society. Building hotel in some society is as good as having abandoned project because it won't yield any profits or probably little return at the end of the day while renting apartments generate profits no matter little irrespective of the location. The fact that hotels is becoming rampant in every angle has decreased how lucrative it used to be in the olden days. Building a house for sell in my opinion is the least profitable among the three options available here.

Building a hotel or renting generate income continously and in few years, you'll recover the initial capital despite the maintenance cost but building a house for sell will only give you one time profit and you'll hardly get x2 of your investment. The nature of environment contribute a lot when it comes to renting and building hotels in terms of profit.

I have several ways, if you have an apartment, rent it out for the long term and sell some of it so that you can get 50% of the money back.

Is it possible to sell 50% of apartment? How convenient do you think the buyer will be sharing apartment with tenants that are not his own? Moreover, selling half of apartment will decrease the return and making the expected period to recover the initial capital longer. It is either you rent out all or sell all unless it's a different apartment in different plots.

[DOH!]

With the current economic crisis and high real estate prices, capital recovery should be considered in both leasing and selling. Not everyone wants to buy for the purpose of living and settling down long term and not everyone has enough money to buy that apartment outright.
Except for short-term surfing cases of buying and selling. My opinion is that op still maintains the high purpose of selling and combining with leasing to maintain the ability to recover capital smoothly to dilute loan packages (if any).

[Gaza13]

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?

In fact, by renting out an apartment, the investment profit can be obtained within 1-4 years, where I once asked a rental owner who had 6 residential doors, in 3 years the construction funds had been returned and the rest he got profit
I think it is better to rent it out than to sell it

In my opinion, building a residential apartment requires a lot of money to build this business, of course there is a lot of involvement in it, both licensing and cooperation between developers, construction costs and loans. If everything goes smoothly there is no harm in selling the unit, of course at a much higher price, to cover the costs incurred during the development process, of course the target is not for the lower class but for the upper middle class to buy it for this residence.

However, no matter how expensive the price of an apartment house is, of course many people are looking for it both as a place to live and as an investment for the buyer. If you rent it out, what you say is not wrong, but it would take a very long process to reverse everything.

[White pawn]

The profitability can vary from a wider aspects based on the types of business one ventures in , the market demand, like having a higher demand in the supply of your business, another thing is the location and management, when you have a standard location for your business,it gives you a visibility to attract customers for your business.
A poor management brings down the stardard and structure of the business,but when you have a good management your business will go smoothly and profitable.
It's very necessary to conduct a thorough research on any business before investment to consider your risk and Goals

[Alone055]

The profitability can vary from a wider aspects based on the types of business one ventures in , the market demand, like having a higher demand in the supply of your business, another thing is the location and management, when you have a standard location for your business,it gives you a visibility to attract customers for your business.
A poor management brings down the stardard and structure of the business,but when you have a good management your business will go smoothly and profitable.
It's very necessary to conduct a thorough research on any business before investment to consider your risk and Goals

Well, you are talking about it from a perspective like it's any other business but what is being discussed here is real estate, but I agree with your points.

Even in the real estate business, the location of your properties and their management plays a vital role. I have observed and it is said by real estate professionals that whether you are selling or renting a place, be it an apartment, a store, or anything in general, a maintained property would bring you higher rates and better customers because everyone like renting or buying maintained, clean, and tidy places.

If we talk about the ROI and whether one should rent or sell a property after buying it, I believe it depends on the person's mindset and what they want in general from this business. Many people believe they get better profit if they buy, renovate, and sell immediately, and many say it's better to rent out and get rent money every month. I would say the first option is better because maintenance costs can become a problem over time when you are renting your properties unless you are very choosy with the tenants you rent your properties to.

[Huppercase]

This time I will share a little opinion with the OP about the most profitable investment in the future. in several reviews you discuss the money involved in real estate and the money spent on building an apartment can be returned by investment, when the money spent on building an apartment is what is called property investment which is very appropriate if you want your money back, one way is to sell the apartment it can also be profitable quickly. I have several ways, if you have an apartment, rent it out for the long term and sell some of it so that you can get 50% of the money back.

I can try investment that can hold my capital down even though I don't get a cash flow but I will not invest in something that will tie down my capital and also require some maintenance service cost in the future, it might be profitable in the long run but my current financial goal can't handle such investments and that's what I see in this real estate thing. If you build and you don't sell on time and decide to rent out, you will be making money but their will be cost of maintenance.

Bitcoin for instance is a capital intensive investment, not cash flow and it's better but if you have enough, you can still turn it to cash flow if you stake it or use it as loan but as I said you have to be smart about it if you decide to try something of this nature. If you don't have the money to go high in real estate and you don't have another source of income after the establishment, you will be frustrated later in the future but it's more profitable for long term.

[Lida93]

This current economic situation is actually not favoring almost every sector because of inflation. The cost of everything is going up same as building materials, because of the high cost of leaving and materials, building house is not more profitable if you are building for selling purposes, that is why hotels are becoming more rampant because building a hotel is more profitabe than building a house for rent because the payement will be daily, while an appartment payment will be annually.
In my opinion, I think building a house for sell is good, and also building a hotel is also profitable..

Yeah you made a solid point here about the rising cost of building materials due to the inflation condition which has affected the cost of everything. And the location is also a variable to be considered for someone who's building to sell because with the high rising cost of building materials you could spend money building a house in a location where the market value may not bring profit compared to money spent in building the house.

Wherefore you may see hotel business as been lucrative than building for annual renting but have you considered the cost of hotel maintenance, the resources to keep it in business may ware out the owner if he doesn't has what it takes to stay competitive unlike rental where there's little or no competition at all.

[Yukyzu]

With the current economic crisis and high real estate prices, capital recovery should be considered in both leasing and selling. Not everyone wants to buy for the purpose of living and settling down long term and not everyone has enough money to buy that apartment outright.
Except for short-term surfing cases of buying and selling. My opinion is that op still maintains the high purpose of selling and combining with leasing to maintain the ability to recover capital smoothly to dilute loan packages (if any).

In conditions of economic crisis, it will indeed be very difficult to be able to have a return on capital from investing in real assets because everyone will of course first fulfill their needs rather than thinking about their long-term residence, although everyone wants to have an apartment or house, of course they must first save and also have to work harder to be able to have money that they can save to achieve their desires.

Choosing to sell or rent assets that you already own will indeed help you to return the capital that you have spent to build real assets, but if you choose not to sell them, of course in the future the price of the real assets will continue to increase, but it will take a long time if the area of ​​the real assets is in high demand, of course the price will continue to increase.

[stomachgrowls]

With the current economic crisis and high real estate prices, capital recovery should be considered in both leasing and selling. Not everyone wants to buy for the purpose of living and settling down long term and not everyone has enough money to buy that apartment outright.
Except for short-term surfing cases of buying and selling. My opinion is that op still maintains the high purpose of selling and combining with leasing to maintain the ability to recover capital smoothly to dilute loan packages (if any).

In conditions of economic crisis, it will indeed be very difficult to be able to have a return on capital from investing in real assets because everyone will of course first fulfill their needs rather than thinking about their long-term residence, although everyone wants to have an apartment or house, of course they must first save and also have to work harder to be able to have money that they can save to achieve their desires.

Choosing to sell or rent assets that you already own will indeed help you to return the capital that you have spent to build real assets, but if you choose not to sell them, of course in the future the price of the real assets will continue to increase, but it will take a long time if the area of ​​the real assets is in high demand, of course the price will continue to increase.

Actually it could really be that still possible on which we know that it would really be basing up on some factors if we do speak about profitability on which we know that when it comes into this manner then
you would really be needing up to consider about the location of the said property or where its been built. It would really be that impossible that you wont really be getting at least a portion of your investment.
The thing on here is about on the ROI that a particular investor would really be able to have because we do know that when it comes into this aspect then it would really be that hard to determine because
of those common factors that we are really that knowing. Actually real estate business is really that something that a good investment or business considering that it could provide that passive income
specially if you do have place your property on a strategic place then ROI would really be much more faster in compared to those who have placed into those bad locations. This is why it would really that differ
as a businessman who would really be having plans and to those who are just simply not mindful or being wise into their decisions.

[uneng]

With the current economic crisis and high real estate prices, capital recovery should be considered in both leasing and selling. Not everyone wants to buy for the purpose of living and settling down long term and not everyone has enough money to buy that apartment outright.
Except for short-term surfing cases of buying and selling. My opinion is that op still maintains the high purpose of selling and combining with leasing to maintain the ability to recover capital smoothly to dilute loan packages (if any).

Considering the economical crisis where prices skyrocket in a daily basis, we can conclude there are less people prone to buy properties, therefore the only alternative for most of them is to rent a property to live. For investors of the sector, it must be a good choice to focus on rent instead of sales, especially if they decided investing in areas where there is a constant flux of people coming in and out, like universitary or industrial cities and neighboorhoods.

Each case is unique, though. The fact is that the reality of the area where the investor is going to invest must be taken into consideration to reach the best alternative between renting or selling properties. Both of them can be really good and profitable if done in a creative and smart way.

[Tigerheart3026]

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?

both way you can recoup your money just one way is fast process and renting your apartment is slow method or it's like passive income, i see in my countries mostly residential apartment building is sold out after building construction ended, because they are real estate businessman so they will sell one and make another one. but who have lend and make a apartment building to rent then they can recoup their money although it's taking long time.

[LDL]

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 the residential area is suitable for you and you feel that your lifestyle is going well, you can live there permanently without selling your residential building. Moreover, if you have given a residential building for the purpose of selling, then in that case, if you have got a lot of profit, you can sell it. It will depend entirely on your personal opinion whether you can sell if you think you will sell or if you can keep if you can keep it is entirely up to you. But if the residential building is adequately planned and if you have prepared your building to face all kinds of risks then you can do it in case of transfer if you have profit in that case.

[Nothingtodo]

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?

Renting an apartment or selling an apartment at once will definitely be profitable for you but one thing is that one will give you a lot of profit at one time and the other will give you a gradual profit.  Because if you rent out the apartment after building it, you will get a certain amount of profit every month.  But if you make the profit and sell the apartment together at the same time, you will get back the entire capital gain.

[Dr.Osh]

With the current economic crisis and high real estate prices, capital recovery should be considered in both leasing and selling. Not everyone wants to buy for the purpose of living and settling down long term and not everyone has enough money to buy that apartment outright.
Except for short-term surfing cases of buying and selling. My opinion is that op still maintains the high purpose of selling and combining with leasing to maintain the ability to recover capital smoothly to dilute loan packages (if any).

However, if we look at it in terms of profit, then both will be profitable. It just depends on the person, whether he wants to take care of the apartment or not. If not, then the best option is to sell it. We see a lot of evidence of people who are successful because they sell apartments, or even rent them out. However, if we add other things, then it will depend on the person's condition and their environment. However, in terms of profit, both are still profitable until now.

[summonerrk]

With the current economic crisis and high real estate prices, capital recovery should be considered in both leasing and selling. Not everyone wants to buy for the purpose of living and settling down long term and not everyone has enough money to buy that apartment outright.
Except for short-term surfing cases of buying and selling. My opinion is that op still maintains the high purpose of selling and combining with leasing to maintain the ability to recover capital smoothly to dilute loan packages (if any).

Considering the economical crisis where prices skyrocket in a daily basis, we can conclude there are less people prone to buy properties, therefore the only alternative for most of them is to rent a property to live. For investors of the sector, it must be a good choice to focus on rent instead of sales, especially if they decided investing in areas where there is a constant flux of people coming in and out, like universitary or industrial cities and neighboorhoods.

Each case is unique, though. The fact is that the reality of the area where the investor is going to invest must be taken into consideration to reach the best alternative between renting or selling properties. Both of them can be really good and profitable if done in a creative and smart way.

Previously, Kiyosaki and similar speakers advised investing in real estate, because it always grew in price, and they were right. But strange processes are happening now. Real estate is expensive, people are moving more and more often, and it seems right to just rent housing without buying. After all, this is how most people already act. But on the other hand, with this approach, you can end up without your own home in old age...

[Negotiation]

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?

Real Estate is very good in current times if you build an apartment building then rent it out and profit from it if you sell it. There is no number of losses to gain in both cases. These will generally depend on your discretion. If you have more money, you can pay off the apartment gradually by renting it instead of selling it. Real estate prices have increased exponentially these days. And if you want to get more money at once, you can sell them. These will usually depend on your property.