Investments have always been an exciting venture for those looking at financing their future, whether it’s putting money into a new business enterprise, stocks and bonds, or simply investing in their retirement.
In recent years the property market has changed for better or worse, and these changing tides make the real estate market ripe for investors.
Currently, the housing market has seen a 15.2% increase in home sales, so, understandably, many investors are looking for various options to capitalise on the changing market.
For new property investors who want to get involved, it’s also a great time to start thinking about your options.
Here are four brilliant options for investors who wish to try their hand at property investing.
House flipping as an investment
House flipping is an option that is popular for many new investors, which involves buying a property, doing the right repairs to increase the properties’ market value, and selling it at a profit.
According to Ramsey Solutions on how to flip houses, there are two types of house flipping.
The first is the well-known buying, fixing repairs to increase the home’s value and sell the house at a higher price.
The second is an investor purchasing a house in a rapidly rising market.
They hold onto the property for a few months, do little to no repairs on the property, and then sell it at a profit.
This type of investment takes time and could be seen as a risky venture but worth the effort, especially if you do your research into the housing market and the repairs needed to increase the value of your property.
Real estate investment trusts
New real estate investors don’t always have to buy and sell properties themselves.
Some investors often choose to use real estate investment trusts (REIT).
These trusts gather, operate, and finance profit-generating real estate, creating a portfolio for investors.
They operate similarly to a mutual fund and could be a great option if you want to invest in real estate but aren’t interested in buying or getting involved with the physical property.
Buying land for development
Some often think that land development investments are for the wealthy who want to own land for personal or business use.
However, land property development as an investment is often paired with REIT since most land developments co-exist with commercial and residential real estate development companies and heavy investment portfolios.
This with REIT property investments is limitless.
Great news if you’re a small investor looking to put yourself on the housing market with a long-term investment.
Building a home is a long term investment that could work in your favor.
The most significant advantage of building a home is that it gives you complete control over your investment in a way that buying an existing house wouldn’t.
External resources such as a Luxury Home Builder and contractors could help you make your investment a reality.
In the end, once you’ve sold your property, you can recoup your investment.
Rental property investment
For a more hands-on investor, rental properties could be the way to go.
The rental residential housing industry is an important part of the housing market, with the vacation rental market, according to ManageCasa.com, “expected to reach USD 113.9 billion by 2027 and expanding at a CAGR of 3.4% over the forecast period”.
Of course, vacation homes aren’t the only rental properties available: condos, apartment buildings, and residential housing are other rental options available and prime for investment.
Most importantly, you can choose whether or not you want to take on landlord responsibilities or hire a property manager to care for the property for you.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)
