The real estate industry has been around since the early 1800s. Since then, it’s proven to be one of the surefire ways to amass wealth. Not only can a property’s market value escalate, you can also get a source of regular income from it. In terms of investments, we’re talking about a sector that’s far more stable than stock trading.
So it’s agreed, real estate is the way to go. Still, there’s a misconception surrounding it that has prevailed in the minds of those wishing to get into it. Most people believe you need to have a lot of money to invest in property. Contrary to that popular belief, anyone can easily start out and work their way up slowly.
Here are some of the possibilities the industry provides:
What you do here is buy a fixer-upper, or a house that’s in bad condition and needs some work. You carry out some redesigning, redecoratation, or reconstruction to make it look good as new. You simply buy low and sell, the trick is; you’re responsible for making sure the value hits that high. As long as you surpass your purchase price while covering your expenses with surplus left, you’ve flipped it.
Investing in REITs
This one is especially viable for those without some handsome capital to rely on. It also works well with those that wish to invest in real estate without getting hands-on. Just like with stock investing, you buy shares in a real estate company, collecting dividends as you continue holding. You can even diversify your portfolio through REIT ETFs.
So you’re not interested in REITs and you don’t have enough capital to buy an entire property. You can own a percentage of property while sharing costs and profits with others. With lower acquisition and operating costs as well as the ability to diversify, this is a great option.
Rental property investment allows you to get cash flow to cover your property expenses. All the while, the value of the property is going up. This means you get both short-term and long-term revenue if you hold out long enough. From retail, to industrial, and even commercial properties; there are various routes you can take.
Rent Out while Living in
Say you need a place to stay but you also want a property to rent out. You can kill two birds with one stone by purchasing a property with a separate living space. You can live in the servant’s quarters or cottage while renting out the main house. You therefore get income to pay off your mortgage while living on a property that keeps increasing in value.
Venturing into Private Equity Funds
Rather than investing in a property, you can earn a stake in a company that builds, runs, or handles property. You do this by exchanging capital for an equity position in such a company. You enjoy the benefits of cash infusion to fuel growth and you have a higher chance of proven returns. You also gain from the good talent supply that’s just as determined as you are to make the company successful.
Buying and Holding
It’s easy, it has minimal risks, and it gives a good Return On Investment. Consider buying a house, making it fit for dwelling, and holding onto it. Make sure you buy the right house in the right place, improve at any chance you get, and sell it when its at peak value.
Pick your Path
Now you see that there are many ways to reach prosperity through property. Take the time to decide which one is the best for you, do your research, and don’t be afraid to consult the experts. The sooner you embark on the real estate investment journey, the better. So what are you waiting for? Take the first step today.