Why Invest in Real Estate Now?

3 Successful Ways to Invest in Real Estate in 2020

By SaleCore on 5/18/2020

With the challenges to the current market, are you wondering if investing in real estate is right for you? If so, you are not alone. Investing in real estate can be a lucrative- and satisfying- way of making money. For inexperienced newcomers, however, it can also be intimidating and overwhelming.


Why Real Estate Investing?

Ultimately, the goal of any investment is to get a return, or profit. With lending rates at record lows, investing in the real estate market can be a great way to do this. Additionally, real estate provides better returns than the stock market (with less volatility), real estate values always increase over time, and investing in real estate comes with numerous tax benefits.

1. Buy a Rental Property

Dive right in and invest in a property (or a few!) and lease it out. You may also want to consider occupying your own property and renting out rooms or units in a multi-unit building. Helpful hack: You can purchase a property with up to four units and still qualify for a residential loan.

2. Flipping Houses

Flipping homes can be a bit risky, but also extremely rewarding. And, since property values are back on the rise, this is a good time to get started flipping homes. Flipping a house is the sum of purchasing homes under market value, fixing them up, and then selling for a profit.

To be a successful flipper, you need to hunt down those bargain homes – the less work you have to do the better. The ideal flip home would be one that only needs minor cosmetic repairs. You could then make the home look more aesthetically appealing and sell for profit.

When you decide to flip homes, you have to prepare yourself for the possibility that the home may not sell fast – or for much of a profit. You take a big chance when flipping homes, which is why you have to pay special attention to the homes location, needs, and price. However, if you have the knack for flipping houses, you could find this to be one of the best investments you’ve ever made.

3. Rent a Portion of Your Existing Home

If you aren’t sold on the thought of purchasing a home only to recoup your money little by little, you have another option: renting a portion of your house. This idea can take on varying shapes. You could rent a spare room in your home, or fix up and rent out the basement. If you have enough land, you could even construct a small but profitable granny flat. If you’ve yet to purchase your first home and like the idea of profiting from the residence you live in, you could consider purchasing a duplex, living in one unit and renting out the other.

The real estate market can be a tricky and volatile place, so it is always best to consult with an industry professional who can help you make a personalized decision based on your specific budget, wants, and needs.

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