How to invest in real estate: 4 Ways to Get started

Everyone dreams of owning a house. The skyscraping rates of properties often discourage people even to think about it. Various loans are offered by banks but qualifying for it is still a hard nut to crack. But if you want to make money from real estate and have the finance back-up then this field can be fruitful for you. Most of the new investors do not know in-depth about How to Invest in Real estate. They are often confused. Here we have brought up some information regarding how to go about getting started in real estate and what are their general types.

What is real estate investing?

For a layman to understand, Real estate investment is to purchase a piece of land, which may or may not have a house on it, to earn money. Houses and lands only are put on sale. There are 3 different categories of real estate:

Residential real estate

Houses, apartment buildings, and vacation properties. These are examples of residential real estate which is often the easiest type of investment to get into.

Commercial real estate

Storefronts and office spaces are examples of Commercial real estate. It’s more expensive than residential real estate. Buying shares in a real estate investment trust is the best way for new investors to get into commercial real estate.

Industrial real estate

Storage units, warehouses, and other types of buildings used by companies involved in the production are examples of Industrial real estate.

Here are the Four easiest way of getting started-

Real Estate Investment Trusts (REITs) is the one for youreal estate investing

Buying Real estate investment trusts is just like buying stock in real estate. REITs are the companies that own and operate, income-producing real estates such as office buildings, apartment buildings, shopping centers, warehouses, hospitals, and hotels. It allows investors to invest in them. REITs provide a way for individuals to earn a share of the income that is produced through commercial real estate ownership. You don’t actually have to go out and buy commercial real estate. Aditya Birla Real Estate Fund, HDFC Property Fund, ICICI Pru India Opportunities Real Estate Fund, Everstone Horizon Realty Fund, Birla Sun Life Global Real Estate Fund, and Secura India Real Estate Fund are some of the popular REITs in our country.

Give a thought to invest in rental properties

If you own a house then you may think to-let. It will provide you with a regular income while maximizing available capital through leverage. In ideal situations, an increase in the value or market rates of properties leaves landlords with a more valuable asset than they started with. In case You had taken a loan to buy that house. Rental income can still be beneficial. Once the loan has been paid off completely, the rental income becomes all profit Although, there is a risk of renting a property. Rowdy tenants can prove to be a headache. They can damage your property.

Online Real Estate Investment Platforms

This option is ideal for those Investors who invest their money on a bigger commercial or residential deal online. Its prerequisite is that you must have some investment capital at your hand.

Real Estate Investment Groups (REIGs)

This option is ideal for those people who want to own rental real estate without the troubles of running it. A real estate investment group (REIG) is an entity with multiple partners that focuses its business on real estate. REIG may choose to buy, renovate, sell, or finance real estate properties to obtain a return. These groups commonly buyout a property and sell units to investors. They take complete responsibility for the administration and maintenance of the property.

To know more about investment-related solutions, listen to the podcast ‘ Paisa Vaisa’ 


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