Over half of the homes in the United States hold some kind of stock market investment. However, the stock market doesn’t guarantee a profit. This is why it is considered one of the riskiest kinds of investment.
A lower risk option for investing is real estate investment.
Other compelling benefits of this investment type include an increase in value over time. Additionally, most real estate investors choose to invest in rental properties. Collecting rent provides a steady stream of additional income.
Keep reading to learn all about why real estate investment is a good idea, and other need to know information.
Types of Real Estate Investment
First, it’s important to go over the different types of real estate investment.
One of the first is REITs or real estate investment trusts. These are companies that typically own and operate real estate. By investing in these companies, one becomes a shareholder.
Shareholders receive money from rent collection, from an increase in property value, and the sale of various properties.
Residential real estate is another investment opportunity. This is any space, such as apartments, condos, homes, or vacation spots that people pay to live or stay in. Investors make money through rent collection as well as the property value.
Residential real estate can also be house flipping, or buying a house and reselling it for a profit. Many investors that flip houses spend a considerable amount of time and money to repair or remodel homes before reselling.
An alternative to residential real estate is commercial real estate.
Investors also collect rent from commercial properties. However, rather than collecting them from families, these property tenants are types of businesses. These properties may support offices, restaurants, or retail shops.
Lastly, investors can buy land to develop and create new properties.
Benefits of Investing
The most well-known benefit of real estate investing is the steady income, which provides investors with greater financial security. Furthermore, it is a job market that offers plenty of excitement and flexibility. Investors have the privilege of being their own boss and controlling all investment decisions.
Real estate investors are also eligible for various tax benefits and exemptions.
Tips Before Investing
Luckily, there are plenty of tips and resources available for beginning investors. For example, starting with smaller properties may be the best way to go.
Have a clear idea of the property you want, as well as the kind of property you can afford.
During a property search, utilize home inspections. An inspection allows potential investors to see a property’s condition, including potential issues. Other considerations when picking a property include location, value, and profit opportunities.
Finding Available Real Estate
What is the best way of finding available real estate? There are a couple of things investors can do.
They can start by using a google search with phrases such as “property for sale near me” or “home for rent” with filters for their desired rental locations. If a google search doesn’t help, look at real estate websites for listings such as Roofstock or Zillow. Other ways to find property listings include contacting real estate offices and networking.
Real estate investment is low-risk and offers the greatest profit potential. Finding a real estate investment opportunity also allows you to be your own boss!
It’s understandable to be wary about entering the real estate market. However, the benefits far outweigh the risks. There is always real estate investment information out there for beginners!