5 Ways To Make Real Estate Investments Work For You

I love researching ways to make real estate investments work. So here’s a guide to inspire investing in property in a range of profitable ways.

According to the US Census Bureau, real estate investors account for almost three-quarters of rental properties in the US. Buying a property to let is one of the most popular real estate investment strategies.

I myself own the home in which we live – and I’m happy that I own versus rent. You can get a peek inside our home here.

There are, however, many different types of property investments. 

Indeed, don’t assume that buying an inexpensive apartment to let is the only available option.

5 Ways To Make Real Estate Investments Work For You

There is more than one way to make real estate investment strategies work for you. Therefore, it can be helpful to focus on the differences between property investment portfolios. Which real estate strategy is right for you? Read on…

1. Become a long-term residential landlord

When you consider real estate strategies, the first thought that comes to mind is to acquire a buy-to-let property in a residential area. However, becoming a long-term landlord comes at a high cost. You need to consider the expectations and needs of your tenants.

The bottom line: You can’t buy a cheap property with little services and amenities and expect to turn it into a profitable investment.

If you’re going to build a reliable source of income, you need to make sure your investment can meet your tenants’ expectations.

Quality homes need to provide a safe and healthy living environment. In other words, you may need to consider the location and essential renovation costs for your rental. Alternatively, you can also focus on public housing developed with cost and life quality in mind.

The hdb calculator, for instance, can give you a better understanding of the costs associated with affordable housing that doesn’t compromise on facilities and comfort. 

My Favorite Way To Make Real Estate Investments Work…

Buy a home that you want to live in all year round. Then you are living inside of your investment, while it hopefully increases in value.It’s a double win/win.

2. Buy the dream holiday home

Buying a residential property for investment purposes doesn’t mean that you have to work with long-term tenants. If you focus on holiday homes, (including gorgeous international real estate) you will only work with short-term tenants who tend to stay for a couple of weeks on average.

The advantage of holiday rentals, though, is that they can entirely pay for themselves if you’re smart about your investment.

A holiday home gives you fantastic returns as rental costs tend to be high.

Additionally, you’re always guaranteed to have a place to go away and recharge your batteries. Holiday properties save you money when you’re planning your vacations – as long as you remember to make the property unavailable for bookings when you need it. 

3. Buy to sell 

You can invest in the real estate market without becoming a residential landlord. House-flipping is a popular approach to build profits. House-flippers buy an inexpensive property in dire need of repair and improvement works. They then proceed with the necessary enhancement work before putting the property back onto the market.

Successful house-flippers can recoup their costs and make a significant profit through the process.

However, you need to have a lot of cash available to finance home improvements and redecorating. Besides, it’s easy to focus your attention on transformations that don’t add value to the property!

Most experienced flippers make approximately $25,000 on each property. It’s not much.. But it can add up quickly if you flip several properties in one year. 

4. Become a commercial landlord for a company

A lot of investors understand the benefits of a commercial lease. When you have a commercial tenant, such as when you’re letting a store in a shopping mall, you are going to make a lot more profit at the end of the year than you would with a similarly sized residential property.

However, commercial leases can be confusing if you don’t have an experienced advisor with you.

Unlike a residential tenancy agreement, a commercial lease is entirely negotiable, and therefore less regulated. As a landlord, you can negotiate a commercial lease where the tenant is responsible for property taxes, insurance, and repair costs, for instance.

5. Give solo-entrepreneurs the tools they need

Are you not ready to rent out your commercial space to a unique tenant? In the middle of a global pandemic, it can be tricky to find businesses that can afford office costs. However, you can consider hot-desking and co-working layouts that enable companies to pay for the desks they need.

Hot-desking is growing in popularity in the workplace.

But freelancers and solo entrepreneurs also find significant advantages.

Many want to be able to have a professional work environment wherever and whenever they need it. That’s precisely where co-working offices are a profitable property investment! 

What’s the best ways to make real estate investments work?

The answer depends on you!

Remember….

• A long-term residential landlord needs to balance property cost and quality of life for the tenants.
• Holiday homes can be more expensive, but they also bring higher returns.
• Commercial properties give you more room for negotiations to keep your costs down.
• Letting a co-working space with multiple tenants can help recoup expenses.
• House-flipping can be a profitable investment for experienced flippers. 

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