Real Estate Roundup – 4 Property Investment Methods That Only the Savviest Investors Know About

in Property & Architecture

There are a lot of “get rich quick” schemes out there. However, in most cases, you’re not really getting rich quickly at all. One of the soundest investments you can make is in property, so if you’re yet to jump on the investment ladder, there’s no better time than now to look at your property options. Read on to learn what the big players are doing, and why you need to get a piece of the pie for yourself.

Choosing Commercial

The residential property market is heating up, which means there is more demand and increased costs associated with it as an investment option. While it may not have occurred to invest in commercial real estate, this may be an opportune time.

While the prevailing wisdom is that commercial property requires a far higher up-front investment, there are numerous options well within reach of the smaller investor that can deliver lucrative returns. Speak to an experienced commercial real estate team about options that suit your budget.

Real Estate Trading

Some people buy properties to sit on them and rent them out for consistent income. Then, when the value rises, they sell them for a profit. They may or may not choose to repeat the process. Savvy investors, however, are buying real estate with the very purpose of flipping them.

They will see the immediate and significant returns in a property as a short-term investment, throw a lick of paint on the house if it needs it, then sell it for a profit. Real estate trading, or flipping, is often a desirable option for people with capital and a DIY attitude who can keep costs low while making money in the process.

Real Estate Investment Groups

Many people are put off becoming property investors because of the many steps involved in becoming a landlord. Some may even go as far as to say it’s more trouble than it’s worth. While that might be true, it doesn’t mean you can’t own properties. Being a part of a real estate investment group could be a worthwhile option, and it’s one that many savvy investors are already looking at.

A real estate investment group is an excellent alternative for those with a bit of capital who want to enjoy a hands-off approach to property ownership. A company will buy or build a block of apartments. Individual investors can purchase one or more within that block. The company manages all the tenants, advertising, and maintenance, while the owner takes a cut of the rent.

Real Estate Investment Trusts

Real estate investment trusts (REITs) allow savvy investors to own property without…owning property. That doesn’t make much sense, does it? You get all the benefits of property ownership but without the hassles of dealing with the property yourself.

Anyone interested in REITs needs investment capital and stock knowledge. A corporation will use your investment to purchase and run income properties, but they are bought and sold like stock. The corporation must also pay at least 90% of its profits in dividends, which stops it from having to pay corporate income tax.

If you are looking for regular income through an investment, then becoming a stock market investor with real estate investment trusts might be right for you.

Money sitting in a bank will earn a consistent amount of interest. Wouldn’t it be better to put that money into something that can make you much, much more? All the savviest investors are looking at these four property investment methods, so it could be time to look at your options, too.

Image Credits: geralt

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