Real Estate Investments: 6 Of The Best Options At Your Disposal
If you’re looking to invest in property, you are not alone. It is one of the few sectors that is consistently shown to outgrow inflation and deliver positive ROIs. Before starting your journey, though, one of the first challenges is to find the right type of investment.
There are many options at your disposal. Whether taking your first steps or looking to diversify your portfolio, here are six of the best.
1| House Flip
Real estate market trends show that properties will appreciate in value over the years. However, house flipping is an ideal solution to make money relatively fast. The basic premise is to buy a property that needs some TLC before completing the necessary jobs and reselling at a profit. High mortgage rates, combined with the cost of living crisis, have forced many homeowners to sell. When coupled with a reduced number of buyers, this creates a strong market for investors. Not least because the market should recover by the time you sell.
2| Invest In Multifamily Units
Most new investors naturally assume that individual dwellings are the only available option. However, looking at multifamily property for sale may be far more accessible than you think. Lenders see this as a smaller risk as you’d only need to fill a percentage of the units to break even. Better still, it is an ideal option from a management perspective as you’ll have multiple assets in one location. So, whether you manage the investments yourself or hire a company to do this for you, an efficient and cost-effective solution is assured.
3| Look At Short-Term Rentals
When looking at different real estate investment options, you will naturally want to maximize your earnings. On the face of things, keeping the dwelling occupied for 365 days of the year seems the best choice. Depending on the location, though, short-term rentals could be a better choice. Holiday rentals and commuter units can often command huge nightly charges. In turn, you may only need to keep the units occupied for 100-150 days of the year to see the same ROI as a full year through traditional rentals. However, there is a lot of work involved.
4| Real Estate Investment Groups
Real Estate Investment Groups, also known as REIGs, are another great option if you want a more passive approach. They work like mutual funds on rental properties and will see you join other investors in purchasing large assets. As an investor, you could own one or more of the units within a complex but it is the company that manages them. Due to the minimal effort needed once your capital has been invested, this is a good option that can run alongside your main career.
5| Foreign Markets
Real estate investments in this country are statistically shown to deliver great results. However, if funding is an issue or you want to diversify your portfolio, you may want to look overseas. This guide to upcoming markets may open your eyes to some fantastic opportunities in the real estate arena. As long as you have a reliable company to oversee the investments, you could see huge returns. Depending on the type of property, it may give you access to the perfect holiday home too.
6| Traditional Buy-To-Let
Finally, you may wish to consider traditional buy-to-let opportunities. This will essentially see you buy a property and rent it out to a tenant. As a landlord, you may look to use interest-only mortgages. Alternatively, you may want to rent out your old home after moving in with your partner. It is a great way to create a secondary revenue stream without investing huge amounts of time and money. This makes it a good choice for first-time inventors because it is probably the style of investment that you already know about.
