Quote from: Dzwaafu11 on September 17, 2024, 07:14:15 PM

Quote from: Davidvictorson on July 18, 2024, 09:43:44 PM

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 selling it out and renting it are profitable. You will be the one to choose. If you build it to sell it immediately, you should know the value you will sell it for because, as time goes on, the house value will continue increasing based on how the location gets developed. You know the house value gets appreciated based on the location where the house is located, but if I should be the owner of the house, I will rather rent it.

Even though it is a slow process of recovering my money, I think it will go a long way for me because I can increase the house rent at anytime I want, so renting it out will give me more profit than selling it out, even though the money will not come at once.

As you said both of them are benefiting to the investor. He had the choice to make if he wanted a steady income for years then he needs to know that renting the apartment is the best option for him. If otherwise he prefers a one-time huge payment, which means making his profits immediately after building the apartment finish then that would be going into real estate.

I don't see renting out the apartment as a slow process of recovering money. It's a store of value. Also, remember that not the cost of house increases every day, the value of the land on which the house is built over decades can give you the recovery money.