HOW TO INVEST ?
In this article we will talk about the three ways to invest in Real Estate.
One of the first methods is home ownership managed by yourself. If you have home staging, DIY and renovation skills and a great patience in managing your tenants, this is the best solution for you. This type of operation allows you to obtain income on a regular basis, to maximise capital through leverage but also to deduct certain significant expenses from taxes. Investing your money in rental properties is a highly profitable but also secure investment. It allows you to add value to your assets. In addition, owning your property gives you greater freedom of management. In fact, if your property needs rehabilitation works, or if you wish to sell it, you are completely free to do it whenever you want, keep in mind that the timing to sell your property can take a few months. Nevertheless this method implicates inconveniences such as a management of the different tenants which can be constraining, or potential damage by the tenants to the property. That’s why it is advisable to be assisted by professionals for a first experience. The real estate agent will be able to guide and give you advice in order to have the best and simplest management property.
2. Real Estate Investment Groups(REIGs):
Real estate investment groups are aimed at clients who do not wish to manage their rentals but to own real estate. Usually it is a company that buys or builds housing and complexes, then, these properties will be offered for purchase to investors through the company. Thanks to this operation they become part of the investor group.This is a collective mode of operation, as real estate investment groups are made up of several shareholders or partners. An investor may own several properties, but all of these will be managed by the investment company. The management is often focused on tasks such as tenant management, maintenance, marketing and advertising. The main advantages are greater liquidity and less personal investment but always a good return on investment.One of the main advantages is the plurality of investment sources, which allows a larger amount of capital and therefore more intensive investment.
3.House flipping :
lt is an investment method in which the investor buys a property not to live in it but with the intention of selling it with profit. The profit made, is often estimated by the renovation made to bring value, and the appreciation of prices, if these increase rapidly or if the improvements allow for a significant increase in value. For example, an investor may buy a property in a poorly-quoted neighbourhood, make all the necessary repairs, and make it attractive enough to sell it at a higher price. This program is aimed at an informed public with knowledge in the field of investment, evaluation, renovation and marketing of real estate. This process often leads to many mistakes, the most common being the underestimation of the time or money needed for the project. Indeed, investors often overestimate their knowledge and expertise.