Increasing numbers of people are looking to make wise investments with their money. This isn’t all too surprising. The job market is fluctuating and many of us are looking for a financial back up plan should we find ourselves out of work.
However, most of us don’t have a clue where to begin! All that we know is that we want something that is low risk, but has the potential to offer us high returns. So, where should we start out? Well, when it comes to wise financial investments, real estate is one of the most positive bets out there. Here are a few different ways to engage with it!
The easiest way to engage with real estate is to take part in investment funds. Most real estate requires a huge investment to start with, as you have to purchase a property outright. However, investment funds allow you to join others in providing a group of professionals with money which they will then invest in different properties on your behalf. This means that you can engage with real estate without having to hand over huge amounts of cash to start with. What’s more? Collaborating with professionals means that your money is well taken care of. These people have years of previous experience and training, so know where best to place the cash for a high return. So, if this sounds good to you, take a look at an unlisted wholesale property fund and see where your investment can take you!
Once you’ve familiarised yourself with the real estate market, you might want to take the next step and go it alone. Now, when it comes to DIY real estate, you generally have two options. The first is purchasing a property to sell it on to another buyer at a higher price. The second, which we will focus on, for now, is to purchase a property and then let it out to a tenant. Buy-to-let real estate secures you a monthly income. If you have used a mortgage to purchase the property, you should charge the tenants slightly more than the mortgage rate. This means that they are essentially paying off the mortgage for you and you have a little extra to add to your own pocket on the side. If you bought the property outright, or you have been letting the property for a while, and the mortgage has been cleared, you can keep the entire monthly payments as extra income. Perfect! Remember that it’s always a good idea to always meet your tenants before allowing them to move in. You want your property to be inhabited by trustworthy people who will treat it correctly. Bad tenants can cause all sorts of damage. So choose people who you think you can maintain a good professional relationship with. Ensure that they are provided with your contact details should they need to talk to you at any time regarding the property or problems that may arise.
As you can see, real estate holds a lot of potential when it comes to taking returns on your initial investment. These are just two ways to engage with it, but they are perhaps two of the easiest options you have!