3 Simple Ways to Invest in Real Estate

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2016 real estate investment strategy 010541
February 23, 2019 Investment Decision

“The best investment on earth is earth.” – Louis Glickman

In today’s age real estate investment is much bigger than simply buying an apartment to fulfill the dream of homeownership. While majority of the people definitely aspire to be a homeowner, there are many who invest in real estate as it is a safe investment choice. However, investing in properties is not as simple as investing in shares and stock market. In this article, we introduce you to three simple ways to invest in real estate and earn big gains.

Invest in rental properties

This is perhaps the oldest form of real estate investment that has existed since the days of landlords. If you are one of those people who look forward to having a steady source of income then rental properties are the best investment choice for you. In Dhaka city even small apartments in a good location are rented at a handsome rate and investing in rental properties are great to secure your future after you have retired to get that steady flow of monthly cash. When investing in such properties, you only need to consider a location that is well developed and where housing demand is high.

Real estate resale

 Real estate resale is another kind of investment where an investor will buy a property and hold onto it until the property value appreciates and resell the property when the market is hot. This kind of investment is completely opposite to buying and renting out properties. While the former gives you a steady cash flow, real estate resale gives you a huge amount of money in a short time. But for this you need to be patient and have a thorough idea about current market prices so that you can sell the property at the right time while making a handsome profit.

Leveraging real estate

One of the biggest advantages of investing in real estate is that unlike in stock market, it gives you added leverage. For example, when you invest in stocks or shares, you have to pay the entire price at the time of buying the stock or share. However, when you invest in real estate, especially with home loan, then you are paying initially only the down payment and your own equity of the property value while the rest of the value is covered by the loan. This means you have full control over the investment and equity even with paying a fraction of the total value and this is what gives you leverage when you invest in real estate.

Although initially real estate investment may feel like a risky and complicated choice, it is a much safer investment because of the stability of real estate market and aforementioned reasons. If you have researched the real estate market thoroughly and are looking for a safe investment choice or for diversifying your portfolio, then investing in real estate can be a worthwhile endeavor for a secure and bright future.