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Updated by Joanna James on Mar 16, 2024
Headline for 5 Ways to Invest in the Real Estate Market- Customised Means of Secure Diversification
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Joanna James Joanna James
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5 Ways to Invest in the Real Estate Market- Customised Means of Secure Diversification

If you're looking for a quick way to earn income with a long-term appreciation of wealth guaranteed, there is no better way to diversify your investment portfolio than real estate. Here are some exciting avenues to get started.

1

DIY with Rental Properties

Renting out an entire home or part of one typically has a bad rep due to the more hands-on nature of the job, from paying utility bills, maintenance costs, broker fees, and property improvement expenses to patiently managing different calibres of tenants, there is still an undeniable appeal for those with the necessary mettle. For instance, despite the "landowner costs" and diverse demands of property upkeep, this investment model also proffers a recession-proof source of income with an assurance of capital appreciation. As long as you have enough upfront finances to cover maintenance expenditure and vacant months, as well as implement a screening process for selecting tenants of good values, preferable lifestyles, and stable income levels, property rentals are nothing to shy away from!

2

A Taste with REITs

If you want to gradually dip your toes into the real estate world for portfolio exposure, Real Estate Investment Trusts (REITs) are a great way to go about it! A reputedly rock-solid investment for those familiar with the stock market, REIT ETFs provide investors with exclusive and diversified entry into larger well-managed asset investments that yield the most favourable returns, from avant-garde metropolitan apartments to malls, hospitals, and corporate buildings. These exchange-traded trusts are highly liquid without needing a real estate agent or title transfer and derive a long-term income without requiring any hands-on work from investors, such as operating, managing, or renovating properties. If you're looking to pursue prime real estate in Sri Lanka, venture no further than John Keells Properties.

3

Hands-Free with REIGs

Real Estate Investment Groups (REIGs) are similar to mutual funds but with a decided focus on rental property investments. What usually happens is a company builds or buys a set of apartment complexes, condos, or housing units and then allows investors to purchase them as part of the ownership group. One of the main perks of this real estate investment model is that company handles all the "landowning" tasks of marketing, screening tenants, management, operations, and maintenance, so investors are allowed to be more hands-off than in rentals. While, in exchange, the company is owed a percentage of monthly rent, investors still receive some portion of income even if their unit is vacant in the REIG scheme.

4

The Thrill of Flipping

If you're innovative, practical, and economical, then investing in an undervalued home that needs a few touch-ups here and there, renovating it with love, and reselling it for a profit will be a captivating challenge! While this process isn't as effortless as it looks on HGTV, those with significant experience in evaluating properties and a good knowledge of the market can benefit from quick returns and capital tied up for only six months or less, by which time the 'transformed' home is sold!
The Ease of Online Platforms

5

The Ease of Online Platforms

Digital real estate platforms are ideal for investors who want to contribute funds to bigger residential or commercial deals, as they adeptly link real estate developers with high-interest investors. However, to guard against the high level of risk, only accredited investors are approved in real estate crowdfunding channels.