Yields and Profit Strategies for Real Estate Investors

What's better: yields or holidays? It seems so simple written like this, but most overseas property buyers would choose the latter, probably because it's much easier to see how you could enjoy a holiday than an excel spreadsheet. The truth is holiday homes are expensive assets that spend your money, but commercial property generates profits, maintains the value of your capital and finances your future — a much better long term solution, right?

The first thing most (first-time) investors demand is high-yield property, but data shows that lower yields are actually the key to better profits at the end of the day. 

In this article, Tranio’s managing partner and real estate investment expert George Kachmazov explains how property with high yields actually gains less value overall in comparison to commercial property with low risks.  

"Yields depend directly on the balance between location, tenant reliability and liquidity. Unfortunately, most investors want high yields without the risk, but it doesn't work that way. You can't buy a property with a "risk level" of 3% and expect it to earn 7% yields per annum."

George Kachmazov, Managing partner and real estate expert at Tranio

Key points:

•    Location, tenant reliability and liquidity are key in any investment decision

  •      7% recommended max. yield for a secure investment with good price growth
  •      Foreign commercial property is best investment for emerging market buyers
  •     Rental income strategy is the simplest and safest strategy for overseas property
  •      Added value projects focus on operational yields, best for industry experts
  •     Target city centres like Germany’s “Big Seven” cities, Vienna, London and New York

To read the full interview, just click here.

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Tags: investment consulting, overseas property, property investment, real estate, real estate investor


About Tranio

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Tranio is an international real estate broker with a large property catalogue. We help our clients to buy and lease property directly from the best foreign agencies and developers without any additional mark-ups or unnecessary intermediaries.

Bianca Jutaru
PR International Media, Tranio
Tranio
Ul. Pyatnitskaya (18, str. 3.)
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123104
Russian Federation