The Best Real Estate Investments Niche
Niche markets pay well. Consider the highly specialized occupations that deliver the highest salaries, such as doctors, dentists, technicians, engineers, and contractors—niche markets for real estate investing function similarly. You’ll perform better financially the more you specialize.
Forbes claims that more billionaires come from the real estate sector than from any other access class. For years, it has also been the go-to investment for people seeking to accumulate long-term wealth. Although it’s impossible to foresee the future, we see signals of industry expansion if we analyze global property market trends. However, real estate assets have various sub-categories, some offering more benefits than others. So, investors should consider the available asset options to determine their portfolio’s best real estate investments.
For investors to succeed, they must develop a focus and acquire a depth of knowledge to specialize in a particular field. Long-term success depends on taking the time to create this degree of mastery in a specific market. Investors who have mastered one sector can apply the same in-depth strategy to new markets. High-end housing, serviced apartments, or rural farm renovations are a few examples of specialized real estate investment niches.
Special Sector Investments
The real estate market is broad and highly diversified. There are several distinct categories of properties, and each has its operational challenges, risk-return profile, and specific requirements for management. Savvy investors are looking beyond the conventional real estate asset classes, and some of the elements impacting the optimistic outlook of this sector include changes in how people view their homes (such as home working culture) and advancements in technology (smart homes and automation).
Globally, more investors are switching from conventional real estate classes like homes or offices to alternative unique sector investments, concentrating on luxury developments and vacation properties. Investors should consider their financial goals, risk tolerance, timeframe, and individual preferences. Only then should they select a niche that is a good fit for their best real estate investment.
The Concept of Luxury Serviced Properties
The demand for serviced apartments is rising. This niche real estate investment type offers private, company-managed luxury flats rented out on a short- to long-term basis with high-end amenities, such as on-site pools and sports facilities, in-house cleaning, and grounds upkeep.
Landlords and tenants can enjoy the comfort of a home and the splendor of extremely high hotel standards in these apartments. They offer several deluxe conveniences all in one place. For example, swimming in an infinity pool with a sea view is a great way to unwind from your busy schedule. Having all the luxury comforts on your doorstep means you have a top-notch hotel experience combined with the privacy of a residential property. The luxury nature of this type of property means they attract a higher class of tenants and consequently a higher rental rate.
The typical return for a serviced apartment is from 6.5% to 9%, which is greater than that of conventional rental properties. Including seasonal, short-term, long-term, and variable pricing means generating extra revenue with a serviced apartment is more straightforward than with traditional rental properties. In the wake of the Covid 19 pandemic, we have seen a sharp increase in demand for this model of serviced apartments, attracting more clients and pushing rental prices up. This high demand is good news for investors who have chosen this real estate investment niche as they are reaping the rewards of a timely investment.
Furthermore, the turnover time for clients for serviced apartments, particularly ones in desirable locations, is short. Investors can expect minimal empty periods in their reservation calendars as serviced apartments appeal to a broad client base, from business people to international travelers.
Are Serviced Apartments the Best Real Estate Investment Niche?
Investing in serviced apartments has numerous benefits. Once you have a portfolio, generating a respectable monthly income that you can use to make other investments is simple. They’re a fantastic addition to any portfolio and may even be helpful for individuals looking to significantly boost the income from their current portfolio. Furthermore, a well-located and well-kept serviced apartment can produce profitable returns due to the improved rental income, decreased risk of void time, and growing popularity with businesses and internationals.
Our management firm, Zen concept, maintains the apartments and extra facilities in excellent condition. At Royal Blue Montenegro, we also offer our investors the option to reside in their serviced apartments for specific periods if they want to be investors and savor and discover Montenegro’s vibrant atmosphere. So, if you are interested in investing in this niche real estate asset, get in touch with our helpful advisors to unlock the potential of a luxury apartment in an up-and-coming European destination.
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