“Real estate investment is so only if property ownership is involved.” W-R-O-N-G! In reality, there are several alternative possibilities for investors to gain the advantages of real estate appreciation without undertaking the continuous duties of property management. How so, you ask? Online real estate investments. Also, through online real estate platforms. Online real estate investments offer a more passive option to engage in the real estate market without incurring the costs associated with property selection and upkeep.
Real estate investing is profitable. Investment in real estate has long been seen as a good strategy to diversify and generate income from your financial portfolio. While it is common to believe that the only way to invest in property is via direct property ownership, the truth is that several choices provide lucrative and consistent income flow without the need to own a property. It has never been simpler to invest in real estate without the trouble of owning and managing properties, stressing about renter rules, or paying for the ongoing expenditures connected with property upkeep. Now that is where online real estate investment companies like Assetmonk enter.
But, firstly, what is online real estate investment?
When you consider real estate investing, you may anticipate owning a rental property or purchasing a house. However, both of those alternatives put you in a financial bind since you must come up with a down payment and closing expenses, which run between 6% and 12%. In addition, you will have the burden of being a homeowner. Sounds like a lot of work, eh?
But, the great news is you can still invest in real estate without owning it. But, how exactly does any of this make sense, you ask? Well, online real estate investments strategies and online real estate investment platforms have made it all possible. All your dreams come true. You can now invest and own property without ever managing it. Instead, someone is going to operate and manage the property for you. You invest in real estate properties online in a more feasible way than you would if you were involved in traditional real estate investing, such as flipping houses or having the more typical physical presence of a real estate investor. You can often invest in online real estate by installing an app on your phone and making periodic investments/contributions within the app.
How exactly do you do online real estate investment?
What if you could make a real estate investment without ever purchasing a physical property? Without ever having managed the property? Does this sound like something you’d be interested in? Here are a few real estate investment possibilities to consider:
- REITs: Consider real estate investment trusts if you want to invest in real estate right away and with as little money as feasible (REITs). A Real Estate Investment Trust is a professional firm that invests in commercial real estate through finance and equity. These public corporations raise revenue by selling stock and issuing bonds, and the profits get used to buy and lease real estate assets such as shopping malls, office towers, apartment complexes, and warehouses. REITs got created in 1960. It aimed to provide investors with the chance to participate in real estate as an asset class. REITs are obligated to distribute virtually all of their after-tax income to their shareholders in dividends. Real estate investment trusts simplify the process of owning real estate. Management manages all ownership and rental procedures, so all you have to do is sit back and receive dividends, which are usually larger than those of many stock-based investments. They provide a 7-8 percent average yearly return to small and middle-level investors.
- Real estate crowdfunding: Investors looking for a more hands-on approach might look at online real estate platforms or crowdfunding real estate investing platforms like Assetmonk. Rather than broad, generic portfolios of properties, several online platforms enable anyone to participate in individual real estate development projects. Real estate crowdfunding is a concept where real estate projects raise funds from groups of people for financing. It gets done through online real estate crowdfunding platforms that serve as a meeting place or marketplace for property developers and prospective investors. Investors get debt or stock in a development project in exchange for their money. They also receive monthly or quarterly payments in successful situations.
- Fractional Ownership: Have you ever wanted to invest in that fancy office building next to your flat but couldn’t because you don’t have a lot of money? That is, until now. Through fractional ownership, you can invest in a commercial real estate property worth Rs. 35. crores with a starting amount of Rs. 10 L. There are online fractional real estate ownership platforms like Assetmonk. Assetmonk, for example, curates fractional ownership of commercial properties opportunities for each investor. Numerous investors pool their funds to purchase a high-end office property. The co-owners or investors split the income and expenses derived from the office building. Investors also get the rental revenue as per the amount invested by them in real estate. Capital gains derived from the property sales also get split between the investors as per their contribution. The investor or partial owners of the property also gain rent yields varying from 6- 10 percent annually.
- REIGs: Real estate investment groups (REIGs) are suitable for persons who wish to own a rental property but don’t want to deal with the inconveniences of managing it. Investing in REIGs necessitates a cash buffer as well as access to finance. REIGs are like small mutual funds that invest in rental homes. You want to buy a residential unit. But, you do not want the headaches that every homeowner has. Then, an REIG may be the solution for you. An REIG corporation buys or builds apartment complexes. They also allow investors to purchase these properties. These investors also join the organization at the same time. An investor can buy one or more self-contained dwelling units. However, the REIG manages all the flats through maintenance, vacancy advertising, and tenant selection. In exchange for providing these management services, the business receives rental money each month.
Real estate investment may be more affordable than you believe, and there are several methods to participate in this frequently profitable commodity. Real estate crowdfunding and purchasing real estate investment trusts are examples of pure financial plays that do not require hands-on management from you. Each of them reduces the danger of investing in a large project on one’s own or without assistance.
Want to invest in India’s growing commercial real estate sector? Connect with Assetmonk, India’s fastest-growing wealth-tech platform focused on real estate investments. As per your financial requirements like capital appreciation or passive income, you can select assets online and invest in top cities like Hyderabad, Bengaluru, and Chennai without any hassles.
Online Real Estate Investments FAQ’S
Yes, online real investment is safe. There are credible online real estate investment platforms in India like Assetmonk.
Online real estate investments offer a more passive option to engage in the real estate market without incurring the costs of property selection and upkeep.