Low mortgage interest rates and the higher availability of real estate inventory have resulted in this investment option becoming extremely lucrative in 2021. Investing in property has more advantages than one. The most crucial point is that you will not need large sums of money to profit from value appreciation. You can invest small sums and expect attractive returns on investment. Should you start to search around, you’ll come across several methods to invest in real estate.
Conventional Strategy – Purchasing a House or Commercial Estate
Unlike stocks and bonds, you can purchase a house or any other property by paying an upfront cost of 5% to 20% or 25% of the total value. Once the deal is finalized, you’ll retain complete ownership and control over your investment while paying off the balance and interest over time. Further, you can use the accrued equity to take out a second mortgage and use the funds for more investments. With so many options, buying real estate is possibly one of the best channels to build wealth quickly. Even so, purchasing a property outright is suitable for people who intend to live in it or rent it out and earn rental income.
Crowdfunding Real Estate Investing Platform
If you prefer an option where management is minimal, you could go with a crowdfunding real estate investing platform. This option is also great for small investors looking to dip their toes in the real estate industry but aren’t quite sure where to begin. The exciting thing about investing in Real Estate Investment Trusts or eREITs is that you can invest small sums or denominations as low as $500. Of course, more advanced plans with $100,000 or higher are also available. As for returns, should you check out the Fundrise review, you will learn about interest rates ranging from 7.4% to 12.4%. These rates depend on the portfolio of properties the trust owns and the particular year.
Trademarking Unique Property Designs
With rapid development and urbanization, a new form of real estate investment has emerged. Unique and innovative building designs can be copyrighted and registered by their owners or the architects who have created the concepts. Novel building designs with unusual defining characteristics have the potential for becoming easily-recognizable landmarks over time.
Businesses may want to use the landmarks or their nicknames as part of their branding campaigns to advertise and sell their products. To do that, they must acquire the rights from copyright owners. Further, builders wishing to incorporate some of the design elements would have to purchase the intellectual property from its owners. To monetize real estate using this strategy, you would need the assistance of experienced intellectual property attorneys who can draw up and register the related paperwork to ensure that the titles are clear.
Developing Guest Suites
Developing guest suites for renting out is another of the fast-upcoming strategies of investing in real estate. You could organize a guest suite in the basement or above the garage if you own a home and have the space. Of course, you would have to acquire the necessary municipal permits and comply with mandatory rules and regulations. For instance, the suite should have a fully functional kitchen and bathroom along with a separate entrance.
Instead of a couple of rooms, you could also build a freestanding suite on your property if the local building codes permit it. Once the suite is complete, you can monetize it by renting it to tenants wishing to stay short or long term. Converting the suite into an Airbnb vacation rental could also be an excellent strategy to make money from your real estate investment.
Whether you own real estate or wish to make money investing in property, there are a whole lot of options out there. Search around for the best ways to invest and you can expect to earn attractive returns.