- Do you know how you can make a solid income from investing in profitable real estate opportunities in 2020?
- Are you aware of which is a better option between rental income or investing in real estate bonds and stocks?
- Have you tried listening to what financial experts are trying to say when it comes to real estate investing?
Whether you are looking to seriously pursue real estate as an investment avenue or just want to learn the basics, 2020 is probably the right time to start. This is because investing in real estate has been made simpler with the advent of digital and technological platforms.
From scouting for the best rental properties to creating a long-term investment vision in a new neighborhood, you can do everything from your smartphone itself.
In this article, we look at what the most successful real estate investors are saying about investing.
List of 5 Ways to make money in Real Estate Investing
1. Appreciation in Property Prices
The most common way to gain from real estate investing is through good old-fashioned appreciation. However, you need to remember that you will only be able to accomplish the profits by selling. This means that you purchase a property, let it appreciate and then sell it.
In order to ensure that the appreciation helps make a substantial profit, plan your investment in an up and coming neighborhood, with ample public transport opportunities. This will allow the property prices to grow multiple times over a short period.
2. Steady Rental Income
If you want to start earning as soon as you make an investment, you should try rental opportunities. This can be done for both residential homes as well as commercial spaces. Rental income is great if do not want to get into a lot of hassles.
Even if you are a small investor, who is looking to take financial assistance from a bank, you can use the rent to help with the EMIs. When you start receiving monthly cash flows you will automatically start feeling better about your investment decisions.
3. Renovations and Flipping
People who want to seriously get into real estate want to do more than just Driving for Dollars. They want to make the most of every real estate opportunity, which comes their way. This means getting their hands dirty with renovations and flipping properties.
The key is to buy a distressed property at a low price. Invest in renovations and adding value. Then flip the same with a more upmarket buyer. This is a quick way to multiple your real estate investments and income in the real estate industry.
4. Real Estate Company Stocks and Bonds
Almost all national governments float government bonds, in the form of mortgages and assets. While this may not directly be linked to buying and selling real estate, it is nevertheless true that you can make a decent income with security in government bonds.
There are billion of real estate and infrastructure companies that also float shares on the Stock Exchange. Some of these companies are blue-chip, meaning they rise slowly, but in a stable manner and always ensure growth margins. This can also be a decent investment opportunity.
5. Vacation Rentals
In the past few years, real estate owners are striking deals with companies like Air BnB, OYO, and others to rent out properties entirely. This means that one can expect a great flow of income and also keep the property is secured and trusted hands.
The income from renting out to vacation companies is far better monetarily as well as credibility. This has allowed a lot of people to come forward and start investing in real estate in the last few years.
The Final Word
Real estate continues to be a hit with many investors. Successful investors swear by it when looking to diversify their portfolio. Can you think of some other way investors can make money from real estate? Let us know in the comments section below.