Ways to invest in real estate

Being a landlord is not very easy as you have to constantly listen to the problems of there tenants if there are any. But that is a profitable real estate investment. Real estate investments can be very lucrative. It can help you in diversifying your investment portfolio and can also be an additional stream of income. Not many people are aware of this and even if they are aware, they do not know how to invest in real estate. Once you know how to invest in real estate, you can get some huge returns and high profitability. We have mentioned some of the ways in which you can invest in real estate. Some of them require low maintenance while some others need high maintenance.There is some recommended property rental in the north of Singapore which you can have a look at.

Buy REITs

Real Estate Investment Trusts provides you an opportunity to invest in real estate even if you are not having a physical real estate. They are similar to mutual funds but they are companies that own commercial real estates such as office buildings, apartments, hotels or retail spaces. REITs have a good investment during retirement because of their high dividends. The investors can use the regular income or reinvest that dividend if they want to invest further. However, EITs as simple as they look. They can be complex an varied. Just like stock, you can trade some of them in exchange while others are difficult to trade-in. The risk you are taking depends on the REIT type which you are purchasing. This is because if the REITs are not trades, youmight find it difficult to value.

Use real estate online platforms

The real estate online platform helps to connect the real estate developers with the investors who are willing to finance projects whether they are through debt or equity. The investors take the majority of the risk in such cases and they also pay the fees on the platform and hope to receive some distribution in exchange, either monthly or quarterly. However, it is not as easy to unload them as it is trading stock.

Resell properties

You could purchase a house that is underpriced, renovate it in an inexpensive manner and then resell the house and earn profits for it. This is often called house flipping. There is an increased level of risk involved because of the maths which is involved in calculating the total cost of renovation work which needs to be estimated before. If your repair cost is more, selling off your house might not be as profitable as you would like it to be. Another risk is that if you hold your property for along time, you will make less money because there is no income while you are paying a mortgage at the same time. The risk could be lessened by living in the house while it is fixed up.

Conclusion

IF you are interested in investing in real estate, you can certainly start with these options. Choose the one which you are interested in based on the risks and returns.