4 Real Ways to Make Money in Real Estate in 2021
Real estate is a viable investment opportunity for millions of people, particularly as you don’t need a large amount of capital to begin making a profit. With numerous different ways to invest in property, you can find endless ways to generate revenue or build capital using real estate. If you want to expand your investment portfolio, take a look at these four real ways to make money in real estate in 2021:
Lease a property
When you lease a property, you can retain the right to purchase it at a pre-agreed price. This means you can secure a future right to buy a property with relatively little outlay. Furthermore, you can see how the property market grows (or declines) before you decide whether to act upon your right to purchase the property. In addition to this, you can sell your rights to a leaseholder to another individual or company, which could allow you to cover your initial investment and make a profit.
Buying a property and renting it out to tenants is an effective way to invest in real estate but building a property with the aim of renting it out can be even more lucrative. With build-to-rent investing, you purchase land and finance the development of properties before renting them out on completion. If you don’t have the funds to do this alone, you can pool your resources with other investors to get construction underway. For as long as you own (or part-own) the properties, you can generate rental income from them and, if you decide to sell in the future, you can potentially benefit from capital growth too.
Real Estate Investment Trusts
A real estate investment trust (REIT) allows you to invest in the property market without actually owning any property. Instead, you’ll invest in the construction of property developments alongside other investors and receive your return as dividends. While you can join a private investment group to do this, there are also publicly funded REITs you can invest in.
Buying or leasing property in a popular tourist location gives you a great opportunity to make money with vacation rentals. Once you’ve renovated the properties or established your business, vacation rentals can generate passive income, which makes them an ideal choice for an investor who is short on time. If you want to generate income without having a hands-on role, you can even appoint a vacation rental manager or supervisor to deal with bookings, queries, marketing, etc.
Start Investing in Property
Although the property is an alternative investment, many people consider it to be low risk. Although you’re never guaranteed high returns, real estate can present a lucrative investment opportunity. With the potential to generate capital growth and/or rental income, real estate can be a great way to finance your future.
Given the range of investment opportunities, it’s important to undertake your own research. By doing so, you can find an investment that’s perfectly suited to your needs.