Post
Topic
Board Economics
Re: Which is More Profitable?
by
knowngunman
on 15/09/2024, 14:02:50 UTC
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.