This business is not to buy today and sell double tomorrow. It is long term and so the investment should be conceived.
The executive also assessed the various price alternatives and real estate will always be a better option than any other financial product.
The real estate business has two benefits: it receives a monthly income, which adjusts annually with inflation, in addition to the appreciation of the property.
The development of the city is another variable to be taken into account.
There is an additional variable: financial leverage.
Hence the awareness of how much debt can be indebted. I recommend that the debt be between 40 and 60% of the value of the property. This way the loan installment is covered with the value of the rent. To do this, check the value of the property lease.
An initial 50% of the value of the property generates healthy growth, with expansion of new projects based on more liquid money and less debt. Provides security to buyers, does not trigger the offer and does not affect the prices of homes.
It is more difficult for the builder to get 50% of the project, than to build with 20% deposit.