You probably don’t want to be a landlord if you’ve ever had one: Answering late-night phone calls about oversized bugs and clogged toilets does not appear to be the most glamorous job. But, when done correctly, real estate investing can be profitable. However, many new investors are unsure of where or how to invest in real estate. Some real estate investments do not necessitate being at the beck and
Property ownership is not always required for real estate investments. There are numerous other opportunities for investors to reap the benefits of real estate appreciation without having to shoulder the ongoing responsibilities of building maintenance. Investors who want to go beyond the traditional sense of investing can do so across multiple locations, property sizes, and real estate classes. While these may serve as stepping stones to future property ownership, the returns from these investments may be compelling enough to deter you from purchasing a home altogether.
Real estate investing is lucrative and it doesn’t require a significant amount of capital. While it is common to believe that the only way to invest in real estate is through direct property ownership, the truth is that numerous other options provide lucrative and consistent cash flow without the need to purchase a property and with less hassle.
But why do real estate investing?
More wealth has been created by the real estate industry than by any other industry. However, people are still hesitant to join the fray. Most people believe that they must start with some capital, but this is not always the case.
Real estate investing can be a great way to diversify a portfolio while also providing a hedge against market volatility. Because real estate is not directly correlated with the market, it can provide stability in a portfolio when stocks rise and fall. Many investment options like commercial real estate do not correlate with the financial markets, Thus, it safeguards your investment portfolio from economic fluctuations. CRE is a stable and physical asset, as opposed to other volatile investment products.
There are several advantages to real estate investing. It generates steady income flow, appreciates at pace with inflation, gives high return due to favorable leverage, and allows for equity development by reducing debt.
Investors have chosen real estate as a haven for their spare cash to achieve consistent returns that at the very least outperform inflation. Many people, however, are unsure how much money to invest and what options are available within their financial constraints.
So, what are the real estate investing methods for you in 2022?
- REITs: REITs enable you to invest in real estate without owning and managing the actual property. They are also an excellent way to gain exposure to the real estate market without investing large sums of money, especially at today’s high prices. These entities, which invest in and own real estate and real estate-related securities through a tax-advantaged structure, can be a great way for new investors to get started. REITs, like stocks, can be purchased through a brokerage account and provide investors with access to high-quality real estate portfolios managed by experienced and highly qualified fund managers. REITs, in the end, give investors access to expensive real estate without having to pay the premium to buy it directly. REITs are known to provide a minimum annual return of 7-8 percent to small and middle-level investors.
- Fractional Ownership: Have you ever dreamed of investing in that glitzy office building beside your apartment but cannot because you do not have deep pockets? Well, not anymore. You can now invest in a commercial real estate property valued at Rs. 30 crores with a minimum of Rs. 10 lacs through fractional ownership investment in office real estate. Several investors pool their resources to buy a premium office building. The expenses and profits associated with the property are also shared by the investors or co-owners. Rental income gets distributed to investors in proportion to their property investment. The capital gain realized at the sale is also divided proportionally among the investors. The property’s co-owners also earn rental returns ranging from 6% to 10% per year.
- Real Estate Crowdfunding: Crowdfunding, as defined by the foundational book “The Crowdfunding Bible,” is the practice of requesting the general public to donate money or starting capital to help support new companies. Concepts may be marketed directly to regular Internet users via this type of online fundraising, in which open calls to possible investors are put on websites alongside prospective investment possibilities. These individuals, who contribute to a pool of funds derived from others with similar interests, might give financial support for existing or potential real estate ventures. Such opportunities can take the shape of residential or commercial holdings and can entail either the creation of new housing, retail, or office space or a stake in an existing holding. In essence, real estate crowdfunding allows you to increase or expand your wealth while also starting in the world of property ownership and rental with a little initial investment.
Do you want to invest in fractions ownership of commercial real estate and real estate crowdfunding? Assetmonk is an investing platform based in Hyderabad that specializes in high-end real estate crowdfunding and fractional ownership opportunities in Hyderabad, Bangalore, and Chennai.
Real Estate Investing modern methods FAQ’S:
The best strategy for real estate investments are:
- Fractional Ownership of the commercial real estate
- Real estate Crowdfunding
The three ways you can invest in real estate are:
- Fractional Ownership of the commercial real estate
- Real Estate Crowdfunding
- Real Estate Investment Trusts (REITs)
Commercial real estate is the most profitable type of real estate.