Joanna James
Investing in real estate is something that can be financially rewarding and satisfying too and what's more, it's not just for people with huge capital or resources; it can be as simple as buying and renting out an apartment. Here are some easy ways to invest in real estate.
Also known as REIGs, real estate investment groups are ideal for those who have access to financing as well as enough capital. How it generally works is that a company will construct or buy a real estate property (an apartment complex for example) and then give investors a chance to buy them and join as a stakeholder. This is well-suited for those who also don't want the added responsibility of managing or overseeing a property since the company will handle all aspects related to maintenance, tenants and advertising vacancies; for this service, they will take a percentage from the rental income.
One of the easiest ways to invest in real estate is to own and rent out properties including an apartment. While some time may have to be spent on certain properties that need fixing up or renovation, this will not be the case for new apartments managed by a trusted real estate developer. For example, those looking to take advantage of the draw of living in Colombo, Sri Lanka can invest in apartments from the likes of TRI-ZEN; you will get freehold ownership while foreign companies or individuals can invest too. Such investments offer a steady flow of income and the property value appreciates over time as well.
A real estate investment trust or REIT is similar to dividend-paying stocks. A corporation or company will use money from investors to purchase and manage a selected income-generating property; a high proportion of the taxable profits are paid out by way of dividends to the investors. Real estate investment trusts are sold and bought on the stock market; they provide a means in which to secure a regular income though are usually limited to non-residential real estate investments such as office buildings or shopping malls.
Depending on the country and regulations, you can also invest in properties via what is known as real estate investing platforms. Sometimes referred to as real estate crowdfunding, this online platform offers a convenient way in which to join others to invest in large residential or commercial projects. While you can't purchase the property outright, you will need to invest less capital. Such sites provide the perfect link between real estate developers and those looking to invest, though do remember a management fee will be charged.
Popular in countries like America, this kind of real estate investment requires know-how and some effort; it involves finding and buying an undervalued income-generating property or asset and then reselling it for a profit in a relatively short period. This usually involves buying a property and then renovating or repairing it where needed, before selling it for a higher amount. Ideally, to get involved with house flipping, you should have experience and knowledge regarding real estate marketing and valuation as well as renovation.
A true believer that the pen is a mighty weapon, ventures into reaching the minds of every reader with the earnest hope of leaving an indelible stream of thought.
A travel writer who has a pas...
