How to Invest in Real Estate – Great Opportunities for the Savvy Investor

 When it comes to investment strategies, purchasing real estate could be a lucrative and satisfying choice. Unlike bond and stock investors, those investing in real estate have the chance to purchase a property by paying a certain proportion of the entire price up front; the balance, in addition to interest, can be paid over time. Of course, it is possible to outright purchase real estate too. Described below are ways you could profitably invest in this sector.

image via https://www.primeresidencies.lk/

 By purchasing rental properties

Possessing rental properties could be a profitable investment for those who have the necessary abilities to renovate and maintain properties, and deal with tenants. However, for this kind of investment, you will need enough capital for maintenance expenses as well as to cover any vacant periods. With this kind of investment, you will receive regular payments and the value of the property is also likely to appreciate. You could also consider purchasing a new apartment where maintenance will be covered, while the property value will increase. To invest in this way, you could consider some of the best apartments for sale in Colombo in prime locations; these include apartments at properties of Prime Residencies that could subsequently be rented out providing you with a regular cash flow or sold later for a much higher price.

 By real estate investment groups

Another way of investment would be through real estate investment groups or REIGs which would suit investors who desire to possess real estate rental properties but wish to avoid the problems involved in managing them. For REIG investment, a cushion of capital, as well as financing access, will be necessary. In fact, REIGs could be compared to smaller mutual funds which focus on investing in rental properties. Typically, in a real estate investment group, a company will build or buy a group of condos or apartment blocks; they will then permit investors to buy them via the company so that they will become part of the group.

 By house flipping

This method of investment would suit individuals having enough experience in the marketing, valuation and renovation of real estate. House flipping will require capital as well as the capability to undertake or oversee, any needed repairs. Typically, house flippers will aim to purchase properties at a lesser price and sell them profitably in under six months. Generally, pure real estate flippers will not frequently invest in refurbishing properties; therefore, they will select properties with higher intrinsic value so that they can sell them at a profit with no alterations made. Some flippers will also earn money through purchasing moderately priced real estate properties, renovating them and selling them profitably.

 By real estate investment trusts

Another way of investing in real estate would be through a real estate investment trust or REIT; this would be suitable for investors with the desire to invest in real estate whilst avoiding traditional transactions in this field. When creating a real estate investment trust, a corporation will use the money provided by investors to buy and manage properties providing income. Therefore, REITs will be sold and bought on the main exchanges similarly to other stocks. Like the regular stocks which pay dividends, REITs will be a good investment for investors at stock markets who seek regular earnings. REITs will also make it possible for investors to make investments in properties like office buildings or malls which they would otherwise not have the opportunity to do.

 By online real estate platforms

A real estate investing platform will suit investors who desire to join like-minded individuals in making investments in a larger residential or commercial deal. Such an investment would be conducted through real estate online platforms which are also referred to as real estate crowdfunding. Although this will still require investment capital, it would be an amount smaller than what would be required for an outright purchase. Online platforms serve to link investors desiring to provide finance for projects to developers in the real estate field. Thereby, investors may have the opportunity to diversify their investments without large amounts of money.

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