European countries continue to gain momentum in popularity. Almost everyone is interested in them - from tourists to investors. Every year more and more foreign investors are wondering how to open a business in Europe. Many businesspersons are attracted by the quality of life in European countries, so they actively invest their funds here in real estate (and not only). It is worth considering which investments are the most profitable and why.
Is it worth investing in commercial real estate
The most popular and profitable area of investment is commercial real estate. This happens since one can receive a long-term stable passive rental income by purchasing an apartment. Investments of this type are indeed a very profitable and reasonable solution for foreigners, especially for those who plan to obtain a residence permit or citizenship in the future, because the presence of registered property in a particular country significantly increases the chances for it.
Buying real estate is especially popular in Spain, Czech Republic, Germany and Slovakia.
The pros of investing in commercial real estate
Purchase planning should include the item of securing the capital. Experienced investors understand that keeping money in real estate is a safe decision that minimizes the effects of inflation. Nevertheless, it is important to understand how and where to invest money most appropriately. The most popular destinations remain in European countries.
The main advantages of investing in European real estate include:
- Reasonable investment that provides passive income.
- The possibility of the official business development and the proceeds storage in the most reliable banks in the world.
- Saving money in a stable currency will minimize the effects of the crisis.
- A good chance of getting a residence permit or a passport of a full citizen of the particular country.
- In addition to passive income from rents, the property can make good money by selling it, as commercial real estate in Europe is rapidly becoming more expensive.
Where to invest, relying on a personal budget?
It is necessary to decide on a budget to make a competent investment. Each investor has a different amount of money planned for financing. You can consider various options, and based on personal funds choose the best one for yourself:
- Small resort cafes will be a good option for businesspersons with a relatively limited budget. To start such a business you will need 150-400 thousand euros.
- A budget of 400,000-2 million euros will allow the purchasing and development of office space with an impressive footprint.
- With a budget of 2-4 million euros, you can count on the hotel and restaurant business.
- The availability of 4-8 million euros would be an ideal budget for commercial buildings, apartment buildings or hotels in the resort area.
- With a capital of 8-15 million euros, you can think about buying first-class hotels and shopping centers in cities with millions of people.
To summarize, one can conclude that the correct budget calculation is the key to successful business development. With the competent formation of funds, they will quickly pay off and provide you with a stable income in the future.