Searching for a Safe Investment for your Money
During the last decade, the importance of real estate investment has been asserted through the surrounding economic and political conditions. Real estate is no longer limited to profit only, but rather it is a store of value in the face of inflation. Rather, it is superior to precious metals and financial bonds in that it is able to produce a continuous return, or what is called a negative return that is acheived by renting it to an individual or group without any effort on your part.
Preserving the Value of Money in the Face of Inflation
What frightens any investor most is inflation, the decline in the value of his fixed funds, and his inability to buy the same units of products today as in the past. The solution is to resort to safe investment or savings solutions, especially if you do not have good economic and financial experience, so the priority at that time is to preserve the value of your money.
Saudi’s efforts to Mitigate the Global Economic Repercussions
The Kingdom has made great efforts to mitigate the effects of the Corona crisis. The priority in the years of the spread of the epidemic was to provide medical health care and preventive measures and to fight the virus with every possible effort. The economy and investment had a share of these efforts, as the Kingdom’s government provided financial aid to investors and business owners amounting to 120 billion. A Saudi riyal to mitigate the financial and economic impact on the private sector.
Vision 2030: Encouraging investment and diversifying the Saudi economy
Currently, the government is making greater efforts to develop investment by removing routine obstacles, creating an attractive environment for investment, and encouraging the Saudi citizen to invest his money in strong activities related to Vision 2030. Therefore, the Kingdom has launched several initiatives to encourage investment, and because Saudi Arabia aims to diversify the sources of its economy, it does not depend on the entry and refining of oil, but rather the real estate, agriculture, investment, technology and tourism industries contribute to it.
Some people think that real estate investment is limited to buying several properties and renting them monthly or annually to an individual or organization and obtaining a fixed financial income in addition to preserving the value of the money represented in the property. Despite the quality of this type, real estate investment includes several types, including investment in real estate or funds.
Real Estate Flipping
Among the quick means of real estate investment is what is known as Real Estate Flipping. Flipping, in short, is the purchase of real estate for the purpose of trading in it and selling it after renovating, maintaining, improving its appearance or finishing, and preparing the surrounding area (for large properties), and thus the property acquires a new value that attracts investors or customers.
To flip a property, you need money, knowledge of the area and demand there, experience in finishing and maintenance, and of course time and effort to develop this property. For example, you may buy a house on the oyster that needs flooring, paint, installation of facilities and decorations, and after the completion of these works, the house is sold on real estate marketing sites.
What you Need to Know Before Investing in Flipping Real Estate
Among the problems that accompany the flipping activity is rushing, not realizing the financial investment the house needs to develop it, underestimating the process and considering it not taking time or effort. It is enough to buy a house today, make some simple changes, and then sell it within a few months for a good profit!
It is also preferable to diversify your real estate portfolio by purchasing several properties, as the process of developing and flipping real estate may take months or even years, as it depends on the growth and rise in the value of the asset and its appreciation. To secure a stable financial income, you will have to own several properties.
Aqarmap provides the most important statistics and investment ratios to determine the neighborhood and type of property that achieves the highest investment return