Investments in real estate during the crisis. Investment in real estate during the crisis have diminished greatly. According to the results of surveys and statistical analysis of test sixty percent of Russians still believe real estate the most reliable sources of investment. What is investment? Investing – this is to invest in various objects of business and other activities, such as intellectual, and material, with a view to profit. That is, the investor rejects spending today to get profits tomorrow.
What objects were attractive for investment before the crisis? They were and land areas as a purchase, and enterprise developers, this is the purchase of residential and commercial real estate and rental and sale. If the pre-crisis time construction projects were considered attractive for investment, but now the situation has radically changed. Now consumers want a more affordable price and higher quality real estate. Therefore, when investing in real estate should be approached from the viewpoint of financial management, the is, to calculate all future income and expenses. To help in the calculations are coming financial instruments performance such as internal rate of return, net present value, modified internal rate yield, I think this is enough to start. To invest in real estate must have accurate information.
Information must be obtained from various sources and be sure to use a professional evaluation. Where can I get a professional assessment of properties, certainly in the real estate agency. How to calculate the value of the property having on hand accurate (at least, we believe that information is more or less reliable, because we got it from various sources) information. Now hold the calculation of our investments. Suppose you and I choose the subject of investing one-room apartment in Moscow Metro South West. We buy a one-room apartment for four and a half million rubles, expect to sell it after five years at a price calculated at an annual growth of prices for apartments in nine per cent and receives seven million five hundred forty six thousand rubles for five years, and also we are starting to rent out our apartment for thirty thousand rubles a month, all costs of the rent is deducted, we will not waste time on trifles. Thus, we have three hundred sixty thousand rubles a year lease of our property, and also for the lack of facilities for investment, invest in our lease payments to the Russian stock portfolio, which will bring let the same nine per cent per annum in the year (this portfolio of shares, ie mutual fund), and at the exit after five years, we have two million rubles, which we summarize our income from the sale of the apartment after five years of use, we get nine million five hundred forty-six thousand that the payback period of our project for five years, the index of profitability of our project is fifteen per cent internal rate of return Seventy-seven percent, a modified rate of return Seventy-one percent. Fairly good results even with such a surface calculation of the project, which shows the fifteen per cent – a good steady income, while the market is growing at nine percent per year, according to our assumptions, that is, income is growing faster than the market and any market changes for the better soon lead to an increase of our income. That's because with the help of Excel's uncle Bill can make a pre- evaluate the attractiveness of real estate.