5 Ways To Invest In Real Estate
According to Forbes, the average number of houses in the US fell by 9.8 to 8.3%, making it a reliable housing market once again.
Be it the steep reduction in house prices or a safe investing scenario; real estate has always been a promising investment option for decades.
Whether you're a first-time buyer or a seasoned investor, the real estate market offers investors a wide range of investment options that can be tailored to your requirements and risk profile.
Why Is It the Best Time To Invest In Real Estate?
Real estate is a tangible asset that can be used to generate income. Not only does it help diversify your portfolio, but it also takes advantage of rising interest rates and inflation. In short, it's one of the best and easiest ways to try your luck in investing and building wealth in a safe way.
Buying a new build to sell on
A new build is any property built on previously-developed land to earn a handsome amount of money by selling. Depending on who has the legal rights, this can be done by the owner or developer.
Compared to older properties, new builds are more likely to increase in value over time and provide better returns for the investment. However, they also tend to be sold quickly and can be turned into worthy assets within weeks.
2. Buy property for long-term gains in property abroad.
Investing in a property for the long term is a great way to diversify your portfolio. Since the US has a strong economy, labor market, and real estate market, it's best to look for lucrative property avenues in this market.
When it comes to investing in real estate, there are many different ways to go about it. Some investors prefer to purchase and hold their property long-term, while others might want to sell it as soon as the price hikes.
Regardless of what type of investor you are, it's important that you understand the risks involved with each type.
3. Real estate investment trusts
Real estate investment trusts (REITs) are another great way to invest in property without owning it. However, they offer some advantages over other types of real estate investments.
REITs have lower management fees with reduced capital gains tax than normal properties. This makes them attractive to investors who don't want to worry about managing their portfolios or paying taxes on profits from their investments. Adding to that, they also allow you to diversify your portfolio without dealing with the fuss of maintaining multiple properties at once.
4. Buying via the real stock market
The third and most lucrative way to invest in US real estate is by buying shares in company-run property trusts. There are dozens of companies that own properties they rent out or sell. For example, if you had £1 million and wanted to buy a house for £200, you could put all of your money into the shares of one such trust. The price of these shares fluctuates according to how well they do financially. If they make good returns each year, chances are they will turn into good investments, having increased value over time.
The first step to investing in real estate is picking one or two companies with diversified properties under management. Wherever you invest, try to put only some of your eggs in one basket but leave some scope for growth potential when things go well.
5. Buying via private funds
If it's your first time trying luck into US real estate, it's safe to start with a private fund. The funds are made up of investors looking to invest their money in high-quality real estate projects in the US. They typically charge management and performance fees, which can add up if you invest for years or decades.
Here are a few pointers you should consider before investing in private funds.
Find a good private fund manager with experience managing large portfolios and understanding the complexities.
Always check their track record before making any commitments. See how well they have done with past investments and track their return rate.
Look for a private manager who will make sure to prevent every type of risk involved in a particular investment.
6. Investing in property abroad:
You might have heard of people investing in property abroad considering the lucrative advantages.
To do this, invest in a property located overseas. This can be done either by yourself or through an agent who will find the right property for you and manage its purchase process on your behalf.
So there you have it, 5 ways to invest in US real estate. Whichever way you invest, the key takeaway is to do your research, create a plan and know what you own.
Contact us for real estate services, we’d be happy to help guide you towards a profitable investment that meets your needs. We also have creative lending programs.
Caroline Ramos
(551) 579-9033
Caroline@hostandkeep.com
