100,000 Euros for Real Estate Investment – What to Buy?

If you have the desire and opportunity to invest 100,000 euros, then real estate is certainly a good and secure choice. But which real estate to choose – what would bring the highest return?

For 100,000 euros, it is possible to buy one well-maintained two-room apartment in Tallinn or two small apartments sized 14–25 m2. Of course, the location of the building and price prospects are important. It would be worthwhile to thoroughly familiarize yourself with the general plan of the area and development plans, and find out how great the rental demand is in that region. You should definitely prefer newer apartment buildings, as tenants are often willing to live in smaller spaces if it ensures better neighbors and a more prestigious building. Since for a tenant this is not a permanent and long-term residence, they are ready to make compromises for the sake of the living environment.

But which of the options would be better – a decent two-room apartment or two small apartments?

An investment should generate the greatest possible return for the investor. If the average monthly rent for a two-room rental apartment is 500 euros, then for one small apartment you can get 350–400 euros per month. By buying two small apartments, this amount is already double, or 700–800 euros. Therefore, the return on two small apartments is significantly better and the risks are also diversified, as at least one of the two tenants is surely reliable.

Today, the market for small apartments is very active, as young specialists do not have enough personal funds to purchase an apartment themselves. The assets of their parents are also often unsuitable as collateral, since they too are usually purchased with a loan. Regardless of this, young specialists are sufficiently solvent to pay monthly rent. Young people are also quite mobile and love to travel, so a rental apartment is the best solution for them.

If you have to choose between two apartments, one located in an old building where neighbors are people from very different backgrounds, and the other in a completely new and prestigious building, tenants would certainly prefer the latter option, even if the apartment has less space.

Article source: Arco Vara