If you’re thinking of investing in property in 2019, there are a few options out there this year that can make this a lucrative choice for you. Real estate investing might not be for everybody, but it can be a good idea for those who have the money and determination to see it through. Here, we’re going to take a look at 5 things you can do when investing in property in 2019:
Rent A Portion of Your Existing Home
You could potentially rent a spare room in your home, or you could rent the basement. It’s less likely that a tenant will avoid giving you the rent payment when you’re in the same household, so it has its benefits. You’ll also get a feel for what it’s like to be a landlord without making such a huge monetary investment.
Invest in a Bigger Real Estate Deal
This is where you join with others to invest in a bigger deal, and it can be commercial or residential. You could invest as little as $500, and you don’t have to be an accredited investor.
It could be a really good way to start if you’re unsure. You can use platforms like:
- RealtyMogul – a variety of properties to choose from
- Fundrise – one of the most popular platforms
Flipping houses is risky but can be rewarding. This is where you will be purchasing homes under market value, fixing them up, and then selling for a profit. You’ll need to hunt down those bargain homes and make minor repairs to them. You want as little work to do as possible so that your profit is bigger. It’s not for everyone, but could be a great thing to do if you have a knack for it!
Buy A Rental Property
A rental property could give you extra monthly cash flow. However, the house you purchase must have a combined monthly mortgage payment, home insurance payment, and property tax payment lower than the rent the property requires. You will need to look at buying in an area with high rents. You can check out sites like William Pitt Sotheby’s to find the perfect place. You could also put a lot of money down so that your mortgage payment is low enough. You really need to assess whether your return on investment will be worth it, and whether you’re equipped to deal with tenants.
Real Estate Investment Trusts
Investing in the stock market is always considered beneficial. You could invest in mortgage instruments, bonds, and stocks in the real estate niche. There’s no need to be directly involved, either. There are a few different types of REITS; equity, mortgages, and hybrid. All three usually offer higher yields, which means you get paid back from the interest others are paying on their mortgages.
Investing in property can be a smart move, but you need to make sure you are ready for it. It isn’t as easy as some would have you believe, but it can definitely be lucrative!