The biggest point that a person should know about real state is that it is more than just an investment. Real Estate should be seen as business. However this field definitely requires a little more time and hard work than any other investment. Investing in the real estate sector gives an investor a full control over the decision related to any particular property he or she owns, starting from rent rates (if they plan on renting it), utilities to be repaired, finishing level, what all is to be replaces and so on.
As per statistic, in the last year, home prices for single family has shown a rise by around 5.3 percent while on the other hand the stock market remains flat and stagnant. Investing in real estate gives you benefit of earning extra income also by giving your property on rent and therefore receiving a monthly rental income. People also get benefited from the appreciation of the price which helps the gain profit when they sell the concerned property.
Here we bring to you certain option for investing in Real Estate-
Invest in own house- Renovating and expanding your own house will help you add extra value to your home and this will help in attraction of sales, not only sales but highly attractable for tenants who are looking for a decent house to live in. This is first and the easiest step a beginner can do.
A vacation home- in here, a person can look for a good decent house in the neighborhood which is in a posh area, well equipped with market, cafes and central to the famous location or monuments of that city. Then you can turn it into a vacation house for people who visit the city. Though in the starting you will have to incur certain amount of expense for renovation, keeping a manager and all but with time you will yield great amount of appreciation and profit.
Full time rent house- for a full time rented house, one need not to think so carefully about the location, you can even own a property where you live and put it on rent to some decent tenants who plan to say there for four to five years or maybe more.
Real estate investment trusts- the REITs are just like the mutual funds which own real estate and not bonds or stocks. They can be easily and instantly bought and sold. There are various REITs and each REIT have a specialization in a particular property say apartments, malls, office area etc. REIT helps you buy big property that is a little hard for a person to afford.