Real estate is a very lucrative investment. There is clearly very good reason. By the passing day an increasing number of investors are becoming a part of the large real estate market. Investing in real estate can be a scheme to get rich quick but there is a method to it. Not paying regard to caution and care while investing can result in losses rather than gaining any profit from investment.
In this article we are specifically catering to the beginners of real estate industry. You might have already invested into property. That too without knowing exactly what you need to do with it. Or, you might have a strong desire to invest into a property. In this article we will take you over some of the ways in which you can benefit most from investment. So, without further ado let us get started!
Ways to make money through real estate investment:
While it is certainly quite a profitable business to step foot into; the task is quite intimidating for all that it entails. From the aspect to narrowing down your search on few properties; to property visits, to property negotiations while dealing and then closing of deal is no easy task to do. Deciding on what you need to do with your property or what type of investment is best for you is a question that precedes the investment process and needs to be determined.
Of course every investor is scared to lose their hard earned money. No one needs to be a billionaire to invest in property; with proper planning one can invest with great success. Following are all the profitable ways to earn from property in 2022:
One of the most utilized forms of earning profits from property investment is by renting out property. This activity for property investors is wildly popular because it cuts out the active field work that can be demanded and makes the property owner earn passive income through rent. Having a monthly amount as rent handed to you can be a huge boost that can be applied to your savings or improving one’s current lifestyle.
However earning passive income does not mean that you don’t have any responsibilities in this regard. A landlord needs to keep in close touch with their property’s tenants and reach out hearing their complaints and queries ever so often. The repairs on property fall under the share of the property owner and you will need to check on such complaints. It will be in your best interest to keep your tenants satisfied so that they renew their lease and keep you earning the passive income.
You can invest into the plethora of investment opportunities available to invest as rental properties or build one for the purpose of renting it out later. One thing you need to make sure is that he neighborhood the property is located into has to be friendly enough to host a rental property. People in the locality have to have a need or desire to live in rentals so that your property does not end up sitting vacant on the market.
Another o e of the tired and tested methods of earning profits in the real estate industry is that of flipping houses. This method is not as passive as renting property and timing and strategy of investment is key to success.
House flipping is done on the simple basis of buying low and selling high of property. House flippers will wait for the best time to buy out a property in an area that is soon to appreciate in its rates. Then when the market rolls in favor they will sell this property within a short span of investment to earn profits. There is a lot of skill and interpretation that goes into the practice of house flipping and might not be for everyone however for the right person this is one of the best investment strategies you can opt for.
Factors that must be taken into account:
Various factors need to be taken into account when you are going for property flipping. First and foremost one needs to take into account the property’s location. Location of property comes with its accessibility, facilities and much more from the neighborhood that determines the overall value of a property. The age of property will also determine whether it needs fixing or not.
Say you are investing into a property in a developing area; as the development nears its completion the chances of property appreciation are higher. If you are investing in an older property; it might need some repairs before it becomes desirable for an investor on the real estate market. Go for neighborhoods where people desire to live in or be a part of; if the area has undesirable characteristics like prevalence of a crime rate; people are not going to invest there.
Many investors are strategically going to buy run down properties and invest on their renovations. This brings out the best in old properties and breathes a new life into them, making them once again desirable for investment. Such an investment strategy is also known as a ‘fixer upper’ for a property and can net great profits from what you invest in repairing them.
Commercial real estate:
There are plenty of options that the real estate world is going to offer to its investors. Many young investors might catch on to the idea that residential real estate is the only viable form of investment, however in reality it is certainly not the case. Commercial property can be equally if not more profitable than residential real estate.
This type of property is not only focused on flipping them but also on their development. Commercial properties come in all shapes and sizes. You can invest into a small retail store or within the lots of a large mall to host outlets. Renting out commercial real estate is quite common and profitable than the owner themselves running operations on the property.
Renting out portion of your property:
For those that do not have enough finances to invest in a completely new property for real estate investment; you can earn through renting out a portion of your property. This type of earning does not require you to overlook a property and cuts out the visits you would have to take to the property you are renting out. As a landlord you get to stay in close touch naturally with your tenants which results in a better relationship with them.
A very simple strategy to divide the portions of the house if renting out a floor of property as you live I the other. It is most common for the landlords to live on ground floor as the 1st or 2nd floors of the property are rented out.
Rent out a co working office space:
The in-between way of setting up a commercial property and a rental space can be achieved through setting up your property and advertise it as a co working office space. With the number of freelancers and entrepreneurs rising by the day; the need of a shared office space is emerging. Such investors are not looking for fully fledged out professional office buildings. They need something more toned down to operate their business. Setting up such a property on the market could cater to such tenants. It means that you can earn successfully through real estate. So why not give it a try!
Another big contender rising on real estate market has to be vacation homes. This type of property provides an alternative to hotels.
Pakistan has no shortage of amazing tourist sites. Many individuals from within the state intend to visit its sites; most common tourist resort being the example of Murree. Planning to set up a vacation home? Chances are that people will love to contact you and rent out the space for a few weeks or a month. This is a subsector of rental property which is another great opportunity to earn through real estate.
Real estate is a vast field; it has many opportunities that want to make profitable business transactions. As a quick recap; in this article we went over discussing how rental properties can make you earn passive income through rent. We also discussed the importance of the rising niche of shared office spaces and vacation homes to earn from. Flipping properties is another common method through which many investors are earning from.
Earning from this field can start from as small as renting out a portion of your property. Or it can be as grand of a scale as investing in a luxury property. At every step it is beaming with opportunities to profit off of.
We hope this article was informative for you. For more guides and articles regarding real estate visit our blog on S and S consultancy.