Real estate business plan
Introduction
Real estate investment is that type of investment that is made in real estate with the objective of generating an economic benefit.
The ways in which investment in real estate (real estate) has traditionally been made is through the purchase of real estate such as a house, an apartment, a commercial premises or land hoping to capture appreciation or capital gains on it.
"Owning real estate has long been considered a long-term investment, carrying with it a good burden of protection against inflation"[1].
The premise is that the value of the property purchased can increase in value and by selling it later a profit is obtained with a lower level of risk than in other types of investment.[2].
That is a way to monetize investment in real estate but there is also the case of renting or renting properties to have, in addition to the actual appreciation of the real estate asset, a periodic income.
In the case of land, and depending on its zoning, there is the possibility of agricultural exploitation, selling it when the price increases, or developing it (building on it) in order to sell or rent the property later. In addition, a series of indirect ways to obtain benefits in this type of investment can be listed.[3].
Real estate is generally considered one of the main investment alternatives, since it allows the investor to acquire an asset that historically tends to appreciate, and that, therefore, may possibly grow in value when sold or can be rented with a good return on investment. Thus, the price of existing homes in the United States of America increased by 3.4% annually from 1987 to 2009, on average.[4].
Types of real estate investment
Some of the main forms of real estate investment are the following:.
• - Direct real estate investment: this modality involves the acquisition of tangible real estate, such as residential homes, commercial premises, offices or land. The economic performance is derived mainly from two sources: the receipt of rental income and the potential appreciation of the value of the asset for its subsequent disposal.[5].
• - Participation in the capital of companies in the real estate sector: consists of the acquisition of shares of listed companies whose main activity is linked to the real estate market, such as construction, promoter or real estate asset management companies.[6].