Alternative Real Estate Investments For 2022
Real estate is at a premium in the US, but it’s not just homes that people are investing in. From property portfolios to vineyards, there are many alternative real estate investments you can make this year. Read on to find out about the top alternative real estate investments for 2022 and beyond.
Real Estate Investment Trusts (REITs)
REITs are a way for people to invest in property without owning it outright. Instead, the investment is spread between a number of stakeholders. The funds that each investor puts in is used to purchase new property, and the investors receive money from the profits that the shared property portfolio makes. A prime example of this is DiversyFund, which allows you to invest in a portfolio for as little as $500.
Buy A Vineyard
Property isn’t the only type of land ownership available to the budding real estate investor. Vineyards for sale are a prime real estate investment this year. You can look at purchasing a vineyard and leasing it out to a budding winery owner, or use it yourself. Who doesn’t love the idea of purchasing your own vineyard and creating your very own wine?
Commercial Property
Are you looking to develop your property empire? Purchasing a commercial property might help you on this path. You might be in a position to invest yourself, or look to develop a portfolio through a REIT. Investing in commercial property offers opportunities to let it out to prospective retail businesses, companies, or restaurant owners. It’s a great idea if you want to own property without being a landlord to tenants that permanently live there.
Investing In Land For Development
If you’re playing a long game in real estate, investing in land in emerging areas is a good risk to take. Real estate might become a premium in these areas, allowing you to charge a higher rate to developers. Or, you might find that you want to develop on the land yourself and invest in your own property, or set up a buy to let mortgage as an additional source of income.
House Flipping
House flipping is the process of buying a house at a lower rate and selling it at a profit. In order to do this, you will need:
To have your own skills at renovating property
Have money to invest in the initial property
To have a good network of real estate investors.
You will need one or more of the above. House flipping is a risky business as it relies on having the skills to identify properties you can profit from, and the luck of selling at the right time. Most properties are either purchased in areas that are up and coming, or are homes that need a lot of work. You can make a lot of money from flipping houses, but you do need to have the money to invest in the initial purchase.
Conclusion
What properties are you looking to buy in 2022? Land (or vineyards) are a good way to make a profit without going down the traditional property route. REITs are a good way to dip your toe in property ownership without directly buying a property, while house flipping is a risk but might be a good investment for people with the skills, capital and contacts.
