Investing In Real Estate Real Estate

One of my investor clients asked if a lease is faster in Las Condes, Providencia and Vitacura. The answer to this question is as varied as the experiences that each of the estate agents have had. In general, the profitability of real property is between 5% to 6% and is directly related to the amount invested. That is, greater investment less profitable. As a practical example, a department whose value ranges in the $ 45,000,000 – the cost should be between UF + 5% and 6% a year while a department whose value is close to 280 million U.S. dollars, – the income produced is $ 1,000,000, – per month which means an annual return of approximately 4.3% UF +.

An apartment for rent should be amortized over a period of 15-20 years. The higher price higher amortization period. Continuing with the example above, the department of $ 280,000,000, – should be repaid in 20 years with the annual return should be along UF + 5% income should be in% monthly 1.17 million – subject to shifts downwards. In the case of the department of $ 45 million, depreciation should be closer to 15 years so that the expected return is UF + 5.5% and the rent, therefore, would be $ 206,000 – approx. It is important to consider that these values can vary significantly depending on location, proximity to Metro, the area where equipment is located the property, etc. So much for houses and residential apartments as compared to the income earned by commercial premises and offices they can overcome UF + 12% per annum to be cases of UF + 17% per annum above commercial premises located in top locations.