Real estate is often a good option for people who want to invest, but who perhaps are not as clued up on portfolios, stocks, shares, diversification. cryptocurrency, and things of that nature.
Most of us understand how property works, which means we feel a whole lot more comfortable investing in it. With that in mind, we’re going to take a look at some of the best ways to invest in real estate right now.
Purchase a rental property
Buying a piece of real estate with the intention of letting it to a third party in exchange for a regular rental payment is one of the most common forms of property investment, but it is still one of the best.
Owning one or more rental properties will not only help you to secure a regular monthly income in the form of rent, but it will also mean you have an asset in the form of your property, which is very likely to appreciate over the years.
The only downsides to this form of property investment are the potential costs and having to deal with tenants, although you could employ a property manager to do that for you. Other than that, it’s a pretty solid way to invest in real estate.
Invest in Real Estate Investment Trusts
Want a way to invest in real estate without actually having to own a property outright or be responsible for its care? Perhaps a REIT is for you. What is a REIT? It’s a type of company that buys, operates, and manages retail properties, usually, but not always, commercial. Individuals are able to invest in these companies in exchange for a stake in their property portfolio. This means you can invest in property without the risk that comes from owning the whole building/portfolio, and that you can simply pay your money and hopefully see its value rise without having to lift a finger. It’s kind of like investing in stocks and shares but the stocks and shares have been replaced with buildings.
Buying houses that have a lot of potentials and which are in a decent area, but which are also a little rundown could be an ideal way to earn money if you’re good at DIY or you know a good contractor. The key is to find a property that is structurally sound, but which could dow with a little updating. You then do the work, adding potentially thousands of dollars to the value, before selling on and repeating the whole process again. It’s not the most hands-off form of real estate investment, but it can be one of the most rewarding both financially and personally.
Build a new home
If you have the time and money, building a new home from scratch can be a great investment. Often, it is possible to buy land in high-demand areas for much less than the cost of an existing home. Even with the cost of building the house, it can represent an excellent return on your money if you know what you’re doing and you have the right people to help you.
Even if you go down the route of investing in house and land packages where professionals will do the work for you, a brand new luxe house will typically fetch more than many other homes around it, and you could see a significant return on your original investment.
This option is a bit like flipping houses but on a larger scale.
You’ve probably heard about crowdfunding for entrepreneurs with a new idea or artists who want to make a new album, for example, but did you know you can also use crowdfunding for property purposes?
These days, more and more people are looking to crowdfunding investors to help them raise the money they need to buy property, carry out renovations, and things of that nature. They, in return, will offer investors equity in the project, so when it’s sold, they will reap the rewards. This is a great way to invest in real estate if you want to be hands-off, and you can get started with it by visiting websites like CrowdStreet and RealtyMogul. Just make sure you fully vet any proposals before you invest, because although the returns can be significant, there are some risks and you need to be aware of them before you act.
Put your property on Airbnb
This certainly isn’t for everyone, but if you’d be happy to rent out part or all of your own home to strangers, you could make some extra money on Airbnb and similar websites. In order to do so successfully, you may have to invest some capital in making your home more appealing to visitors, you’ll certainly want to invest in some marketing, but other than that, all you need to do is list youre home and start accepting visitors, so you can pretty much get started today with minimal investment on your part. Save the money you make and invest it in another rental property, and pretty soon you could have your own real estate empire.
Become a mortgage lender
These days, anyone can use their capital to become a mortgage lender on crowdfunding platforms, and if you are willing to take the risk, it could be an excellent way to see a very decent return on your money, Obviously, it will be a long-term investment for you, but if you’re happy to see a return of a few percent on your capital each year, and you like the thought of helping someone to buy their own home, it could be a good way of investing at the moment, Obviously, like the banks, you’ll need to ensure anyone you lend to has the ability to pay but many of these platforms will vet candidates for you so that perhaps shouldn’t be too much of a worry.
As you can see, there are so many ways to invest in property right now, that you’re spoiled for choice., Which one will you choose?