Investing in real estate in my opinion is one of the best – and at times the fastest, surest and least risky – way to reap profits. So, whether you are thinking real estate investment to diversify your portfolio or as sole investment, it’s worth considering.
Rental income and profiting from buying and selling real estate are the two popular ways of investing in real estate. And you can even combine the two options. That is, buy a property, rent it for some time and then sell it.
Student rentals and multiplexes are gaining in popularity but even if you are not thinking investing big in rental properties, just a small rental unit could ensure a regular monthly cash flow for you.
Cash flow from rental income is stable and far more predictable than most other businesses. But caution is advised. Be utmost careful in selecting your tenant/s. It is always advisable to use a local realtor to help you find a good tenant so your rents are paid on time and property is maintained properly.
Also, if being a landlord is not your cup of tea or you have too many rental properties, consider hiring a good property management company.
Buying and selling real estate for profit
You can profit from Buying and selling real estate in two ways. One, as long term investment. That is you buy a property to use or rent, keep it for a period of time and then sell it at a profit. Two, you buy, fix and sell.
In first option, you can benefit from the rental income and book profit when you sell because of property price appreciation over a period of time. In second option, you make profit by increasing the property value by way of renovating and updating or upgrading it.
Buying under construction properties and then selling or assigning it can also translate in Real Estate income for you.
Some added advantages
You may also benefit from some added advantages such as tax benefits. If you earn regular income from your rental properties and/or from buying-selling real estate, you may qualify for tax benefits. Ask your accountant about if and how you can benefit from the real estate income tax benefits.
However, just like any other investment, there are risks involved and you should select carefully what kind of real estate investment is right for you. An experienced, knowledgeable local realtor can help you make most of and from real estate investments.
Questions? Ask Me. I may be a busy Bee but I’m never too busy to reply to your questions. 🙂