How to Make Money in Real Estate
If there is one business that guarantees you richness is real estate. Property prices rarely go down. I’ve said rarely because this might not even happen in your whole life. All those millionaires and billionaires you look up to if you dig into their success? You will see they have invested in real estate.
“Landlords grow rich in their sleep”John Stuart Mill
The above quote is so much true. Real estate can make you rich from broke but it requires deep knowledge of the market, a greater risk of investment, and a good decision-making skill to make the right decisions at the right time. Real estate is the perfect way to make you rich in a short span of time.
“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.”Marshall Field
There are two types of real estate investment and investors:
- Long Term Investments and Big Investors: Big investors are those who would usually buy acres of land to start a new society. These investments are long-term investments and it usually takes 10-15 years for these investments to get mature.
- Short Term Investments and Beginners: Short term investments are usually made by beginners or middle-class people who wish for their investments to get mature in usually 2-3 years. These investors buy a small piece of land.
Now that you understand a little about the real estate industry it’s time you understand how to make money in real estate. There are so many types’ real investments. A few and most common ones are listed below:
- Rent out Your Property
Renting out properties has been the best way to earn money. It gives you a monthly payback just like your salary. You may save it invest somewhere else or you may use it for your expenses.
- Flipping Houses
Flipping houses can make you a lot but it will also cost you some extra efforts to put down to work. As an investor buy an old abandoned property, fix it and do some renovation and designing and then re-sell it. Remember to keep in mind not to make a luxurious house in a middle-class society. It’s not about differentiating but nobody will be able to afford it and those who will be able to afford it they won’t buy a property in that area.
- Vacation Rentals
You can always turn your property into a Guest house. Foreigners or people who wish come for work or business could stay at your place and you can charge them on per night basis. This way of investment can also give your more profit then renting it.
- Renting out an Office Space
Co-working spaces and office spaces are the new trends. Since “work-from-home” has become the new trend more freelancers and entrepreneurs need a separate work environment space but cannot afford to have a whole office for themselves. This is where you come in. Buy some place turn it into a co-working space with the most of your budget and make a better use of your property.
- Buy and Resell property
This is simple. At the early stages of a new project buy a property of your range and then wait for it to get mature. This type of investment gives you a bigger return but it takes time. Go through the society’s brochure and plans and you will get a rough estimate of your investment return. If you know some other types of investments and wish to share them with everybody.
Tell us in the comments below.