4 Simple Ways To Invest In Real Estate
Buying real estate is not just finding a place to call home actually more than that. Investing in real estate has become a common investment vehicles. Today buying and owing real estate become lot more complicated than investing In stock and bonds, we will go beyond buying a home and introduce you to real estate as an investment.
- A Basic Rental Property
This is an investment as old as the practice of land ownership. In this a person buy a property and rent it out. The owner, landlords charges enough rent to cover all the cost like mortgage, taxes and the cost of maintaining the property. The most common strategy is to charge enough rent to cover the expenses but a landlord may also charge more in order to produce a monthly profit. Furthermore, the property may also have appreciated in value over the mortgage, leaving the landlord with a more valuable asset.
- A Real Estate Investment Group
Real estate investment group are sort of like small mutual fund for rental properties. If you don’t want hassle of being a landlord but want to own a property then a real estate investment group may be the solution for you. Firstly company buy or build a set of apartment blocks and then allow the investors to buy them through the company. Company manage all the units like taking care of maintenance, advertising vacant units and interviewing tenants. In exchange for this management the company take a percentage of the monthly rent.
- Real Estate Trading
The real estate traders are totally different breed from the buy-and-rent landlords. Real estate traders use a technique called flipping properties in this technique trades buy Properties and hold that properties for some period of time may be for three to four or more months and then sell them for some profit. Under this technique traders buy properties that are either undervalued or are in a very hot market
- A Real Estate Investment Trust
A real estate investment trust ( REIT ) is created when a trust use investor’s money to purchase and operate properties. Just like other stock REITs are also bought and sold on the major exchanges. To keep its status as an REIT corporation must pay out 90% of its taxable profit in the form of dividends.