SIMPLE WAYS TO INVEST IN REAL ESTATE

Minh Hoàng
April 19, 2021

CafeLand – Investing in real estate has been identified as one of the best ways to make huge profits. However, many people are still quite vague about how to enter this market.

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– The year 2021 is likely to bring new opportunities for investors. If you are ready to get into this vast field, let’s take a look at simple ways to start a real estate investment.

Real Estate Investment Trust Fund (REIT)

– To invest in real estate, you don’t always need to buy a home. Real estate investment trusts allow you to invest in this market without having to buy physical assets. Conceptually, these funds are almost identical to mutual funds, except that they operate in the real estate market.

– You just need to participate in the REIT, then their experts will help you with real estate investment. Profits are paid in the form of dividends. You can use your dividends as income or reinvest them. Some REITs operate on exchanges similar to stocks, while others are not publicly traded.

Long-term lease

– One of the most popular ways to invest in real estate is to lease long term. When you buy a home, you can rent it out to others. The earnings will be used to pay off the mortgage loans as well as make a profit.

– In the case that you are new to investing in the rental market, there is a concept that you should be interested in called house hacking, which has been a hot topic of discussion on real estate forums. Simply put, house hacking means that you live in your house but will rent out other rooms, thereby, you are both the owner of the house and can generate income from your own house. . It can be said that long-term leasing is suitable for many different investment strategies as well as groups of investors.

Short term lease

– Short-term leases allow you to invest in real estate and earn different cash flows. The main types of short-term lease can be mentioned as motels, hotels, studio apartments, …

Join an investment group

– If you currently do not have a lot of capital but want to invest in real estate, you can join an investment group. When you join a real estate investment group, you will join other investors who have the same goal pooling resources. You will then receive a portion of the income generated through the investment.

Buy it – resell

– Buy-and-sell can be the most risky form of investment, but in some cases it will return the fastest returns.

– When investing in this form, you can buy the property at a much lower price than the market price, usually because the current owner is in financial trouble or you can buy a house. house and remodel so that it can turn around and make a profit.

– However, the process is often quite complicated, especially if you have no investment experience.

– Finally, don’t forget that even buying a home is an investment. When you buy a home, you own the property right away, it’s called equity. Over time, capital will grow. When you’re ready, from the start-up capital, you can use it to invest in another asset.

Source: cafeland.vn