New Ways to Invest in Real Estate in
Consider these 4
innovative ways of investing in real estate this year
Investment is a great way to earn some extra cash on top of your daily routine and
there are plenty of markets in which you can do it in. Another option is real estate but the amount of investment
that you need to get it up and running can sometimes be questionable and a bit heavy on the bank
However, in 2019 there are new ways in which you can invest in
property, which can make real estate an added option for you to
|Buying a real estate property requires a big chunk of
money, but in 2019 you will find some
new ways to investing in real estate, a little easier on your
bank account. (Image: Pixabay)
A great way you can invest in real estate is by joining others to make one large
deal if you don’t have the sufficient funds to do so. This can be done in either commercial or residential
property. The reason this is a good option is that it can benefit you in a couple of ways.
Firstly, the minimums required to invest in the properties aren’t that large, so
even a sum of $500 would be enough to be an owner of a property. The next thing is the rule of being an accredited
investor has been banished, depending on the investment type.
There are platforms out there to help you invest in real estate, including
Realty Mogul and Fundrise, which are
Purchase a Rental Property
This is a rather common method to make extra monthly cash. The idea would be to
purchase a property that’s high in rental fees but low in mortgage payments, home insurance and property tax
payments. For example, you could purchase a property that already has tenants so that the cash flow is
Whilst there are many positives to owning a rental property, there are also
negatives too. First of all, you’d need to assess just how much in assets you have at the moment and whether you
can manage the purchasing of a rental property as it would require a lot of money up front. Another downfall is
choosing the correct tenants. During your screening process, you need to check whether they’ll be good tenants that won’t cost you outlay in the future or be crafty with their payments.
|An obvious way to invest in real estate is to buy a
rental property, but you need to find
an established property setup with high rents, but low payments
and taxes. (Image: Pixabay)
This can be a an extremely rewarding way to make a profit if you’re good with your
interior design and have a good eye. This process involves purchasing a property under market value, investing time
to improve it and then selling it on for a profitable sum. How it can be most profitable is if you’re able to find
the real bargains in the market that requires you to invest as little money but still gain a large profit
This option is dependent on the amount of time and money that you have as in some
cases, the houses don’t sell straight away and you have to wait before getting your return on the purchase.
Consider the location, price and what’s required to be done to the property before you consider purchasing it
and doing a house flip.
Real Estate Investment Trusts (REIT)
If you’re more of the type to take a back seat when it comes to investment and
property the other option is the stock market. REITs are a great way
you can do this. It acts as a fund which you can either invest in equity, mortgages or hybrid. An equity REIT
allows you to invest in property, a mortgage REIT allows investments in mortgages and a hybrid is both and they
tend to offer fairly high yields.
This would be an ideal option if you don’t really have the time to get involved
with the dirty work.
All of these options help to cater to your circumstance, which means real estate
investment can allow you to choose more than one way to do it. Just remember that if you’re worried about what
could go wrong with your investment, there’s always help available through residential conveyancing, dispute
resolution and commercial litigation solicitors
Jennifer Ranking is an experienced writer who takes her experiences from copywriting to construct her
articles. Originally from the UK, she likes to write on a variety of topics including travel, health and business
having worked with several businesses in the past through her freelance work.