If you have an extra sum of money and want to invest it, maybe you should consider real estate. Generally, properties tend to increase or hold their value, depending on certain conditions, which is why they are considered a safe investment. They retain their value due to the phenomenon of inflation, since at least its price tends to increase with inflation; although this is not strictly a business, nor is it a capital loss.

However, a property can often increase their value over inflation. Often this is due to the dynamics of supply and demand of properties in the location in which the property is located, either because it is in a fashionable district, or because an infrastructure project has increased its value. It is better to buy lands as a business strategy because the value of any property usually tends to rise along with the price of inflation. Even a piece of land on which nothing is built does not lose its value over time. However, building some kind of housing or commercial property on that land will double its value since you can sell or rent it, thereby recovering your investment.

There are several ways to invest in housing, whether a house or an apartment. You can buy a property and put it up for rent or lease, thus obtaining a fixed monthly income. If the house in which you live is too big for you, you can sell it and buy two smaller houses, one to live in and the other to rent. A few investors in real estate like to buy second-hand housing, remodel and adapt to sell it later, thus obtaining a considerable economic benefit. Other forms of investing in housing include buying and remodeling a property to be sold later. This form of business with real estate is usually common among developers and agents, it usually involves a large capital but its reward is a considerable economic benefit.


SOURCE: Vanguard Newspaper.


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