I’ve seen many people living a luxury lifestyle by building a portfolio of real estate, and have also seen others lose their everything in the same field.
Like any other profession, if you have proper knowledge and if you are good at it, Real Estate can be a great Investment.
It is a source of generating income and rise in value overtime can improve your financial status.
If you are looking for low risk which offers good potential in the long run, then you should invest in property. If the property worth increases in the long run, your capital will also grow and you can enjoy regular income by renting it to someone.
An ideal Investment property is the one which offers a capital appreciation of minimum 10 percent p.a . So, before you purchase a property make sure it is in good location. If you want to fetch good returns the location of the property should be good.
Few points you should consider at the investment:
1.Invest in growing areas
The reason why I’m suggesting you to invest in a growing location and not in an established area is because the latter is more expensive and mostly out of reach. When you purchase a house in an established area the cost of the property is so high that you need to compromise on the area. Secondly, the rise in the value of the property in pre established location is lower in comparison to the growing area. The cause remains in the nature of the real estate market. The prime or established areas reaches their worth over a definite phase of time afterwards it becomes stagnant.
2.Real Estate Partnership
This is the second thing you can consider if you want to invest in the real estate even with little money. You simply put your money and expertise together with other real estate’s capital and expertise for buying a common property or properties. While there are chances of being cheated, unexpected liabilities etc, the advantages of real estate partnership cannot be ignored. The most significant advantage is that you can afford to buy a property that you cannot afford on your own. This idea has made this concept more popular.
3.Access to the public transport
When you purchase a house, what is the first thing a working person or anyone would notice? How well the property is connected to the public transport? Yes.
The primary reason is that everyone has to travel everyday , so it the place is ideal if it has a public transport well connected and markets nearby. For example if your area is near to metro than is the already double in worth as compared to other area. So, while you think of investing in any property, make sure you consider this point because this will help you to earn more.
4.Real Estate Investment Trusts (REITs)
Another way to invest in real estate investing with little cash is REIT. It is similar to investing in any other type of stocks. However, your profits will be rents and appreciation.
Moreover, you will not be engaged in maintaining a rental property, dealing with tenants, arranging with contractors, and any other inconveniences of being a landlord However, there is one serious disadvantage: investing in a REIT is much less exciting than buying a property because you will have no first-hand experience. Nonetheless, you should consider this option – at least initially – because it might provide you with enough money as profits to allow you to purchase your own income property.
5.Long term rental Properties.
This is my favorite in the list. You can make cash returns on your long term rental properties and that does not include appreciation, equity pay down or tax benefits. While investing in real estate with long term rentals, you must focus on cash flow. The best way to do is to buy properties at below market value, make repairs to increase value and then rent the house on high rent.
Commercial properties are another way to invest in Real Estate. Rent terms are usually much longer with commercial, and it may take a very long time to find a tenant. . With commercial properties, loan terms are much different with shorter terms and higher interest rates.
There are many other ways to earn a good return on property Investment. Did you find this blog helpful?
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