Which is More Profitable?

[Accardo]

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 your words recovering which simply means to get back what was used, in order to get back your investment selling is the best option if I'm to answer this  question correctly, but when you are focused of making profit added to your capital investment then renting seems to be the best option because whatever generates money consistently would supercceed a fixed amount gotten at once. Renting it out would be more profitable in the long run you just have to be patient

Focusing on flipping of houses would be more profitable than waiting on rent. Actually, selling houses is a business, and shouldn't be a one time thing, the money generated from selling one property, can erect another one, which can still be sold. All the same, a rented house wouldn't raise enough money to build its replica in a short time. Therefore, the owner is not interested in selling houses, but wants a stream of income that doesn't ask for his time anymore.

[adzino]

Focusing on flipping of houses would be more profitable than waiting on rent. Actually, selling houses is a business, and shouldn't be a one time thing, the money generated from selling one property, can erect another one, which can still be sold. All the same, a rented house wouldn't raise enough money to build its replica in a short time. Therefore, the owner is not interested in selling houses, but wants a stream of income that doesn't ask for his time anymore.

It sounds very easy when you say it. But trust me, flipping a house is not as easy as it sounds. The pricing of the house is never stable. Yeah, in the long run, it does go up, but so does inflation. So if you are willing to make a good profit, you need to be waiting for the right time. So you don't actually get money instantly to buy/build another property (by erect, I am assuming that is what you said). There might be also a case where you bought the house during a housing bubble (like right now). If you aren't able to sell it at the right time, very highly likely you will be losing a lot of money when the bubble bursts.  On other hand renting is a continuos source of income/money for you. People will never stop renting and it is very unlikely that a rent goes down. Rent out few apartments/buildings, you will be set for life.

[Abbatty]

I’m not into real estate but I’m into business and I believe all businesses have one motive which is to maximize profits, so in this case I think when you have a property that is completed and you yet to decide which will bring you more profit which is either to sell it off once and for all or to rent it out and get paid every year. If I’m in that position I think I rather rent it out and get paid yearly tho renting out yearly won’t get you the money you want instantly but you will get paid abit that year and can still sell off your property anytime you want just that it won’t cost as much as when you just finish completing it

Again if you choose to sell off your property immediately after completing it still makes a good money in most cases you can get over 80% profit because new properties attract more richer people. So I think either way when you evaluate both options there isn’t much more difference in the profit margin. This is because when you rent out your property you ought to make maintenances every now and then and your continue to depreciate every year so it selling even when you decide to later sell it off the property won’t worth much again.

[superman22]

When one is choosing between renting out and selling, then both activities are good weather for rent or for sale. Leasing gives the opportunity to count on passive income and obtain a good return in the long term if the object’s condition is properly cared for. However, selling proffers instant gratification, which can be recycled in the market instantly. Personally, I always favor renting, as it presents a real opportunity to earn passive income and gradually accumulate capital. Still, if you are in need of the immediate cash, then selling is the right thing for you. It will all kind of depend with the financial target plus the investment plan that you have. What have you learned concerning this business especially concerning real estate investments?

[shield132]

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 have worked in the real estate business and I know some secrets and tricks that happen in this niche but all of my knowledge applies to the local market of my country, I have no idea how things work in other countries.
In my country, when a company builds a residential apartment, they sell every apartment but leave the first floor for themselves. The first floor is always a commercial part. Pharmacies, supermarkets, banks and every company pays a huge amount of money to rent commercial parts for their businesses. Companies that build residential apartments, leave the first floor for themselves and rent it out but they sell every other room of their built apartment.
Another way that they make money is that some companies also build gyms inside the apartments. People who live in apartments and workout at the same time, have to pay for GYM membership to use the GYM that's built in their house instead of going to another GYM that's far away from their house.
Building companies also offer residents a security service and earn additional money from it.

That's what I know at the moment. There are also premium residential apartments where they have pools and many luxury places or services but that's for millionaires and this type of business works differently.

[Unity for Humanity]

That's why everyone earns in their own business but they give more importance to their business and better they invest money in their business. But at the beginning of the business it is not so easy for anyone to earn profit by doing business. There are many companies or many entrepreneurs who after starting a business faced many challenges and invested a lot of money and at the end of the day they returned home empty handed. No matter what business you are in, patience plays an important role in taking risks. If you can do these things correctly then you are more likely to succeed in business.

[Samlucky O]

That's why everyone earns in their own business but they give more importance to their business and better they invest money in their business. But at the beginning of the business it is not so easy for anyone to earn profit by doing business. There are many companies or many entrepreneurs who after starting a business faced many challenges and invested a lot of money and at the end of the day they returned home empty handed. No matter what business you are in, patience plays an important role in taking risks. If you can do these things correctly then you are more likely to succeed in business.

I don't think your opinion is inline with what op said. If you read carefully you discover that what op is reffearing to is building house to rent out and building house for sale that which is more profitable to each other?
Well according to your statement you said patient plays a role in taking Risk, but I can tell you that not all business is worth risking and being patient for. Sometimes patient is not the only way out, expecially when you are doing something for a longer time and yet no positive result, you need to restrategise and find an alternative. But in this context of op, I believe building of house and selling to recoup their fund is not for everyone like I said earlier but if I am in a position to do that I will just build and sell for sometime and make profit to build for rentage.

[sosruko]

I think you are taking about buying reselling,, I  assume that this is more profitable because, once you have a buyer, you can get your capital back along with the profit you made. , believe it or not, there are a lot of people looking to purchase a home, you can also make these available for renting , that way you can earn passive income

[terrific]

I think you are taking about buying reselling,, I  assume that this is more profitable because, once you have a buyer, you can get your capital back along with the profit you made. , believe it or not, there are a lot of people looking to purchase a home, you can also make these available for renting , that way you can earn passive income

In the global condition, I don't think that many does like a home. With people explaining that renting right now is an option for the most because it's not pressuring at all, this what the many working class is doing right now.
Goodbye to the dreamhouse and they rent out, so the landlords are still earning from this. The location is the key factor on this, if there are a lot of establishments close to the land, if he wants one big pay day then sell. But if he sees long term on it, rent and develop.

[Dr.Osh]

Focusing on flipping of houses would be more profitable than waiting on rent. Actually, selling houses is a business, and shouldn't be a one time thing, the money generated from selling one property, can erect another one, which can still be sold. All the same, a rented house wouldn't raise enough money to build its replica in a short time. Therefore, the owner is not interested in selling houses, but wants a stream of income that doesn't ask for his time anymore.

you are right, that selling a house or apartment will get a lot of profit and more instant than renting it. However, sometimes people who rent their houses do not want to sell their houses. they choose to live in a new place, but still want their old house as an asset and investment. So, what they do is rent out the house they own. it will have at least two advantages, the first is that their house may still be maintained by someone else, the second is that the assets they own will have a high price every year.

[uswa56]

Focusing on flipping of houses would be more profitable than waiting on rent. Actually, selling houses is a business, and shouldn't be a one time thing, the money generated from selling one property, can erect another one, which can still be sold. All the same, a rented house wouldn't raise enough money to build its replica in a short time. Therefore, the owner is not interested in selling houses, but wants a stream of income that doesn't ask for his time anymore.

you are right, that selling a house or apartment will get a lot of profit and more instant than renting it. However, sometimes people who rent their houses do not want to sell their houses. they choose to live in a new place, but still want their old house as an asset and investment. So, what they do is rent out the house they own. it will have at least two advantages, the first is that their house may still be maintained by someone else, the second is that the assets they own will have a high price every year.

If we want a return on capital in the near future, it will indeed be better to sell the house that they have built and that's right, as you said, there are some people who choose to rent and they will be able to be patient in terms of return on capital, but over time, if the house is well maintained, of course the price will continue to increase and also this is more profitable for them and make the asset an investment for their future is also good However, they must still take good care of their house so that in the future it is still worth buying at a high price because the house is still livable.

When we choose to rent, of course we have to occasionally keep control of the house and if indeed the tenant does not take good care of the house that we rent, then it will be better for us to no longer continue to rent to them so that the house we have is damaged or there will be many things that must be repaired after we rent to them.

[junder]

you are right, that selling a house or apartment will get a lot of profit and more instant than renting it. However, sometimes people who rent their houses do not want to sell their houses. they choose to live in a new place, but still want their old house as an asset and investment. So, what they do is rent out the house they own. it will have at least two advantages, the first is that their house may still be maintained by someone else, the second is that the assets they own will have a high price every year.

Selling a house or apartment or other with cash payment can certainly make us have more instant profit, different from renting it. Another thing that might happen if we rent a house is a traffic jam when it's time to pay, I know not everyone is like this but I experienced it where I sold the house but the person who was interested only wanted to rent it not buy it, I decided to give it with a rental system but a few months later the tenant experienced a payment delay, with several times I have given the opportunity but there was no change for the better until finally I reluctantly asked the tenant to leave the house he was renting.
Renting a house is one way that can be done to seek profit or income in the long term, and as you said with two things that are likely to be profitable with a well-maintained house and long-term income, this is a fairly reasonable solution and in my environment there are many rich people who do this.