5 Possible Ways to Invest in Real Property

Investing in real property is not only by acquiring land or a house. So, there are so many other ways in which you can invest in real property.  However, this article talks about different ways of investing in real property. Some ways of investing in real property include:

Rent/buy broker

buy or rent a house image

This involves investment in property by acquiring a house and rent it out to certain tenants. After the determination of the tenants’ payment capacity, then you sell the house to them. You do this with the condition that the ownership of the property is only transferrable after the completion of the agreed purchase price. You may need to involve your professional adviser in the arrangement because the process is somehow complex.

Investing in property shares

cheerful woman holding a house and a star

Building property investments such as housing estates, factories, shopping malls, shopping complexes, and others require a huge amount of money. Therefore, companies and housing developers always seek money from investors to complete their projects. However, this allows the investors to gain access to the potential property investments by investing a small amount of money in the market. Then they get good returns from their investments.

Becoming a Landlord or landlady

A lanlord handling a house key to a tenant

Another way of investing in property is by acquiring estate and lease the whole or part of it out to the tenants. By doing this, it generates regular cash flows. This only achieve if the overhead costs like insurance, taxes, maintenance, and other costs are low. With the technology development, you can shop your properties online through some online shops. These shops connect the tenant with vacant houses by listing those properties on their websites for renters

Investing in Real estate investment trusts

A human hand holding a coin

You can also invest in property without buying it. You can do this by investing in a real estate investment trust (REIT). REITs are regarded as the companies that own, manage and finance real property ventures and they involve in acquiring different types of properties. They pool investors’ money together to acquire, develop, finance, and manage real properties such as shopping malls, complexes, hospitals, and others, then distribute the large portion of the profit earned in a period to the investors as a dividend. Most of these REITs are listed on stock and exchange and it better to buy from those that are listed to keep your investment liquid.

Investing in a house flip

A man holding a house key

This involves investing in real estate property by buying houses, renovate the houses and resell. This kind of investment can provide huge profit but, require a huge amount of money and time-consuming. Successful flippers always get ready for longer renovation time, increase in budget, unexpected issues, unexpected problems in the market, and others as well as having a team of experienced experts such as Accountants, Builders, Engineers, designers, and others.

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