Day: 16th September 2015


Investment Real Estate Strategy #2: Buy–Repair–Sell

Last time we spoke about profiting from a real estate investment using an exit strategy. Today we add more (exit) strategies. The Buy-Rent–Sell strategy we discussed earlier is an endeavor that usually lasts only 1-2 years. In other words, cash-in while the getting is good. In the last 20 years, Swedish real estate has increased in value with the exception of 2008 when prices were slightly down, but then suddenly increased the following years. The funds acquired from the sale of property (the exit) is a huge plus when added to the cash flow created from rent. Today, a 50 square meter apartment in Solna would cost you roughly 2M SEK, which can then be sold for 3M SEK in 1.5 years. That’s 1M SEK in cash flow on a 300,000 SEK investment. Couple that with cash flow from rent, and your ROI would triple! STRATEGY 2: Buy–Repair–Sell This strategy still works in the UK and other countries, but seldom is it profitable in Sweden—however, it was profitable several years ago. In comparison to other real …