Post
Topic
Board Economics
Re: Which is More Profitable?
by
uswa56
on 20/09/2024, 14:38:18 UTC
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

You are right, choosing to sell the building that we have built is the right thing if we want the capital that we have spent back in the near future and the profits we get will also be equivalent to the capital that we have spent, but if we choose to rent then I think it will take a long time to be able to return the capital that we have spent, not to mention the cost of building maintenance that we have to spend every year Of course, it takes a long time to be able to return the capital, but it's different if we want to get an annual rental fee and have patience in waiting for the profits from the building we rent.