Real estate can be a fruitful option for people looking to build wealth. There is a wide variety of options for people who want to capitalize on the opportunities that present themselves in the real estate market. Here are some of the best ways to invest in real estate:
1. MAKE A LONG-TERM INVESTMENT
Real estate prices will only skyrocket due to simple supply and demand principles as populations increase. Hence if you’re looking to invest long term and seek exponential growth on your return, hold onto the property for a long time.
2. MAKE A SHORT-TERM INVESTMENT
Renovate unused houses, apartments, office and factory places and you can easily resell them for decent profits. This will require some time and effort alongside the ability to find the right customers and excellent negotiations skills.
3. REAL ESTATE TRUSTS (RETS)
RETS are like REITs but the properties have high income potential and higher risks. They invest in rent-yielding real estate. REITS are usually funded by private investors and are run by managers. The management fees are reasonable but profits from the investments can be large and volatile, though they may also fluctuate in value over time.
4. PROPERTY ISSUES (FIIs)
REITs, REIT funds, REIT trusts and real estate investment trusts (reit funds) are all types of Real Estate Investment Trusts or “REITs”. The REIT market has been growing, with the first REIT listed in 1971. Today there are approximately 200 REITs traded on major exchanges in the US
5. DIRECT INVESTMENTS IN REAL ESTATE
It’s possible to invest direct into real estate through home purchases, new developments of apartments or hotels. You can also buy a share in a building and become part owner. However, this tends to be quite expensive and it may not give you as much flexibility as other options.
6. INVEST IN REAL ESTATE BY BUYING SHARE OFFICE SPACE
You can buy a share in an office building and become a tenant. If you own just a few shares the management company will keep on paying you rent. However, if you want to grow you may need to join the other owners in order to get more shares.