Property or properties, which consist of land and one or more buildings on it, is referred to as a real estate. The real estate also comprises of natural resources that include water, crops as well as minerals along with any immovable property of this kind. These could be housings or buildings in general.
What is an investment?
Investing is the allocation of money in expectation of some returns or benefits in the future. Financial gain or loss, unrealized capital appreciation or depreciation, along with investment incomes such as dividends, interest, and rental income forms the crux of ‘what is an investment?’ These will also include a capital gain and income. The people who invest are referred to as investors and they generally expect higher returns on riskier investments.
A particular investment strategy is employed by experts in the field, which aids in diversifying their portfolio. Four main investment avenues include stocks and shares, fixed interests, gold as well as properties. Out of these, properties or real estate is by far becoming the best and safest investment in the current era.
Why invest in Real-Estate?
The 2016 Gallop Poll highlights real estate being the best and safest long-term investment well ahead of other investment options such as stock, mutual funds, and gold to name a few. The surprising fact about real estate is that owning property or properties gives emotional satisfaction and stable returns regardless of market fluctuations. Although, real estate business had hit the rock-bottom in previous years forecasting results show that it is in a recovery phase.
Investing in real estate is the safest option from a global front as well. Investing in real estate is risk-free compared to stocks and shares. As mentioned before, real-estate provides good and substantial returns for a long time. For instance, a regular rental income can be taken as a good example. The real estate owners can purchase properties using leverage by paying a portion upfront and then paying off the balance in instalments over time.
Ways to Invest in Real Estate
Be a landlord
Renting part of your home via recognized websites such as Airbnb can be a good way of investing in real estate. The renting of a house or owned building through any other safe and credible means is also a good way, in this regard. Even putting up a room for rent can fetch you good rewards.
Invest in rental properties
House-hacking is booming in the real estate industry. Either the landlord stays in 1 room of a house and rents the others or rents out the units in a multi-unit property. This can bring in financial gain without much of a hassle.
Use an online real estate platform
If you are a real estate investor, you can get connected to developers via online real estate platforms. Investors receive monthly and quarterly distributions for investing in various projects of the developers.
Flip Investment Properties
You get an under-priced home, renovate it well and sell it for a profit. This forms the crux behind investing in flip-houses.
Real Estate Investment Trusts (REITs)
Invest in real estate without observing the plot physically. These are like mutual funds. You invest in firms that handle commercial real estate properties; the rewards will be high in this case.
These facts reveal that real estate is one of the best rewarding and safest investment options than those others in the market.