How to invest in real estate

 Owning and buying real estate is one of the most popular investment strategies which can be both lucrative and satisfying. So, what are some simple ways to invest in real estate? Well, keep reading on to find out more.


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Rental properties

Such properties will be a great opportunity for people who have renovation skills and DIY skills. If you have the patience to work around tenants and manage them, rental properties will be a good way to start. This will provide you with a regular income and maximise capital through rent leveraging. Besides, the value of such properties has been increasing from 1940 all the way until 2006 until the financial crisis took place. And as expected the sale price resumed right afterwards. There are many apartments for sale in Colombo. If you are looking for a property to invest, you can check out ones provided by Prime Residencies.

Real estate investment groups

These are ideal for those who want to get the benefit of owning real estate but do not want to be managing them. In typical investment groups, an organisation will build or buy apartments or even condos. They will then allow investors to buy them through their company and hereby join the group. One single investor will be able to either own a living space or multiple living spaces. But the company who operate this investment group will collectively manage the handling maintenance, interviewing tenants, advertising vacancies and management of all living spaces. In exchange for the services, the company will take a cut out of the monthly rent. These are ideal for individuals who want a more hands-off approach to owning rentals. It will also provide an income for you too.

House flipping

So, what is this all about? This is ideal for people who have had ample experience in the real estate valuation field, renovation and marketing. This type of process requires a lot of capital and skill to oversee management and repairs. The house flippers will invest in properties and sell in a span of six months for some profit. People who are property flippers, won't look into improving these properties. They will sell the property for a profit margin quickly. The major benefits of this process will be that it ties up your capital for short periods of time and even offer you quick returns that a sizeable.

Real Estate Investment Trusts (REITs)

This is ideal for the investors who are looking for portfolio exposures into real estate without some traditional transaction on real estate. This type of trust was created when corporations use the money of investors to purchase as well as operate income properties. These are bought and sold like major stocks. You will receive dividend-paying stocks, co-holdings and cash producing leases.

Online real estate platform

These are investing platforms which are ideal for people who want to join together to invest in big residential deals of bigger commercial deals. These investments will be completed on online platforms which is also referred to as realistic crowdfunding. It will still require capital for investment. However, it will be a little less than what you will need to purchase properties outright. These online platforms will connect lucrative investors who are always trying to discover a finance project in this field. If you are smart, you will be able to diversify the investment without even including much money in it. You will have the ability to invest in a single project or multiple projects. You will also have geography diversification in this process too. So, check it out, and see if this fits your needs!

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