Did you know that financial experts count Real Estate as one of the best investment opportunities during the pandemic? Are you aware that you do not need to own real estate directly to invest in the industry; gain profits while minimizing risks at the same time? Have you tried to inform yourself about the best practices or successful strategies for investing in real estate?
According to leading financial experts and investors, investing in real estate can add diversity to your portfolio. This is especially true of investors who are looking for long-term capital gains and attempting to get some tax breaks in the process.
While many people state that buying equity in start-ups or going for cryptocurrencies is a better option, nothing beats the security and margins of real estate. In Australia for example real estate prices have increase by 7.25% per year for the last 30 year, so something as simple as buying land for sale in Townsville can yield safe and consistent returns. In this article, we are going to look at five successful ways, anyone can invest in real estate in 2020.
Is Investing in Real Estate for Everyone?
Many people have this misconception that you need millions to become a real estate investor. This is completely wrong. A normal individual who wants to become a real estate investor does not need to own huge physical properties. Saying that though, you may need to free up some equity in order to start your real estate investment portfolio so you may want to look into equity release programs or if you’re based in a place like California, companies like www.webuycaliforniahousesforcash.com will buy your home for a cash payout.
He or she can invest as little as $500 USD in huge companies that build real estate infrastructure. If they start doing well, the $500 USD starts increasing in value. Many people who own smaller properties and want to develop them into bigger ones, want to know how to find real estate investors.
Likewise, a group of small investors can come together and become joint owners in any venture. They can develop the property, rent it out, and get their fair share in an equitable manner.
At the end of the day, it is all about being aware and having access to the right resources. Most importantly, there should be an intention of investing in real estate.
List of 5 Successful Ways to Invest in Real Estate in 2020
So, if you’re interested in investing in real estate in order to provide extra income or an investment here are 5 ways to use your money wisely
1. Investing in a Rental Property
If you are someone who is looking to invest in real estate for the first time, going for a rental property makes a lot of sense. This is because you will start getting cash flows almost immediately after your investment. This will ensure that you do not feel that you are not getting anything from making an investment. This is a great way to know the basics of real estate.
2. Investing in Real Estate Stocks
Normal investors who just want to get a taste of investing, but do not have the funds can always invest in real estate shares. Big real estate companies are publicly listed on stock markets all over the world. You can easily pick up some shares and experience growth. Once you have achieved substantial profits, you can pick out your first real estate investment.
3. Reselling Houses After Renovations
A small thing like repainting the house can add three times the value. This is why buying a house, spending an amount to renovate it, and reselling it can help you land great profits. However, you need to bear in mind that this requires substantial effort and resources. If you are someone who cannot devote a lot of time, then you should rethink this strategy.
4. Common Ownership Investing Strategies
Suppose a commercial property is worth $500,000. However, you only have $100,000 to invest. You know it is a good deal. Why not gather four more investors with $100,000 each and become joint owners. Everyone has the same issue with capital. Once you get the property, you can spruce it up and put it on rent. This can help everyone get a share of their investment.
5. Rent out a Small Portion of your House
Many people who want to invest in bigger properties but understand that they would not be able to pay off the EMIs rent a portion of their house. For example, suppose you are interested in a duplex property for personal use. You can raise the bank loan, start living upstairs, and rent out the bottom half. Ensure that you are covering a sizable portion of your EMIs from it.
The Final Word
If you are a first-time real estate investor, you should start small and get the hang of how the industry works. Real estate as an investment opportunity will always be in vogue as the population will always increase and land will keep decreasing.