You probably don’t want to be a landlord if you’ve ever had one: It doesn’t appear that taking calls about over sized bugs and overflowing toilets is the most exciting profession in the world.
However, if done correctly, real estate investing may be profitable, though not spectacular. It can assist diversify your current investment portfolio while also providing an additional source of income. And many of the best real estate ventures don’t necessitate attending to every whim of a tenant.
The problem is that many new real estate investors have no idea where or how to begin. Here are some of the top real estate investment opportunities, ranging from low-maintenance to high-maintenance.
Best ways to invest in real estate
Buy REITs (real estate investment trusts)
Real estate investment trusts (REITs) allow you to invest in real estate without owning the property. They’re companies that own commercial real estate, such as office buildings, retail spaces, apartments, and hotels, and are sometimes compared to mutual funds. REITs tend to offer significant dividends, making them a popular retirement investment. Investors who do not require or desire monthly income might have their dividends automatically reinvested to increase the value of their investment.
Use an online real estate investing platform
You’ll understand online real estate investment if you’re familiar with organisations like Prosper and LendingClub, which connect borrowers with investors eager to lend them money for various personal requirements like a wedding or house remodelling.
These platforms bring together real estate developers and investors looking to fund projects with financing or equity. In exchange for taking on a large degree of risk and paying a fee to the platform, investors hope to get monthly or quarterly dividends. These are speculative and illiquid, like many real estate investments, in that you can’t readily dump them like a stock.
Think about investing in rental properties
When Tiffany Alexy bought her first rental property at the age of 21, she had no intention of becoming a real estate investor. She was a college senior in Raleigh, North Carolina, at the time, and she wanted to attend graduate school in the area, so she believed owning would be preferable to renting.
Consider flipping investment properties
This is HGTV in action: you buy a low-cost home in need of some TLC, renovate it as cheaply as possible, and then flip it for a profit. The approach, known as house flipping, is a little more difficult than it appears on television.
“There’s a higher element of risk,” Meyer adds, “since so much of the math underlying flipping involves a very accurate estimate of how much repairs will cost, which is not easy to accomplish.”
Rent out a room
Finally, you may rent out a portion of your home to get your toes wet in the real estate seas. This type of agreement can significantly reduce housing costs, allowing people to stay in their houses while still reaping the benefits of property appreciation.
This is especially important for the elderly. According to the Joint Center for Housing Studies at Harvard University, a quarter of adults aged 65 and more who lived alone spent more than half of their income on housing in 2016. For elderly persons living with roommates, the percentage declined to 12.9 percent.
Our Property Management Company is a cumbersome and time-consuming process. And it gets a tad overwhelming for landlords who are living away from their residential property to maintain and manage their property. This is where LuXia LLP walks in to simplify property management company of your property.
For NRIs and even for Indian property owners living in cities other than their property our property managers can help tremendously. There are many benefits of using a property company. For instance, to rent a home, property legal documentation, remittance of rental dues and property maintenance entail the requirement to use services of a NRI property management services for NRIs.