With the Covid-19 pandemic shaking up everybody’s finances, largely for the worst, it makes sense if you are looking at more conservative investment strategies for 2021.
One of these, real estate, provides a relatively low risk to generating returns.
However, as it’s wise to diversify your investments, what different types of real estate are worth your time?
Have you ever considered investing in Manufactured Home Communities?
These mobile homes are constructed almost entirely in a factory as modular builds and are much more cost-effective for many people looking to invest in property — or buy a brand-new home for their family.
Owners of manufactured homes own their property but then lease the land on which it sits, hence the lower cost in the purchase price.
As an investor, you’re hardly going to solve a housing crisis by investing in this kind of real estate, but this is a solid investment strategy nonetheless.
This type of residential housing can produce positive returns as people will always need somewhere to live. Depending on supply and demand in your area, you could receive a healthy profit.
If you have the will and inclination to pour time and effort into a single project, then the returns can be hugely significant.
Buying a rundown property in a great location and transforming it into the best-looking development on the street is a surefire way to make a great return on your investment.
If you’ve always been a fan of property TV shows, then you’ll already know the profits that can be made by fixing up and then flipping sought-after real estate — so now it’s your turn to profit.
Be wary, though. A fixer-upper often comes with nasty unexpected surprises which can cause your budget and time frame to double in some cases.
Nevertheless, this type of investment is a fairly fun one.
Commercial real estate
Alarm bells might be ringing when you read this tip, given everything we’ve read about the volatile office market over the last 12 months — but hear us out.
While you’re right, it makes sense to avoid investing in traditional large office towers at the heart of urban centres, the rise in remote and home working will see shared workspaces such as those provided by WeWork really thrive.
If you’re willing to gamble on the future of the office market, then it may be worth investing in shares at a firm like this.
Alternatively, other commercial real estate such as industrial and logistics units will always have a place in society, with or without home working.
It may be worth building up a portfolio of these types of property and then attracting customers on long-term rentals to earn yourself a regular yield or sitting patiently on them for a while before selling to the highest bidder.
Hopefully, these three different types of real estate investments help you to generate positive returns in 2021 as you recover from the losses of the Covid-19 pandemic.