If you are a landlord, you might have handled calls about bugs and overflowing toilets. However, when all the tasks are handled well, real estate could be one of the lucrative jobs, if they are not flashy. It helps in diversifying your existing investment patterns and would serve as an additional source of income. Real estate investments do not need to show up during each call made by the tenant. Many new investors are unaware of where or how to invest when it comes to real estate. If you have plans to buy investment property Melbourne, you could easily find property investment advisors Melbourne. Have a look at some of the best methods to make money when it comes to real estate.
Buy Real Estate Investment Trusts (REITs)
REITs allow you to invest in real estate with ease. It is often compared to mutual funds and is companies that own commercial real estates such as retail spaces, hotels, apartments, and office buildings. REITs tend to pay high dividends which makes them a common investment for retirement. Investors who are not interested in a regular income could automatically reinvest those dividends to grow the investment.
Make use of an online real estate investing platform
Many companies connect borrowers to investors willing to lend them money for different personal needs like the home renovation or weddings. Such platforms can connect real estate developers to investors who want to finance projects either through equity or debt. The investors might receive quarterly or monthly distributions in exchange for taking a major amount of risk and paying a fee to the platform. Like various other real estate investments, they could be illiquid and speculative which you cannot easily unload the way you could trade a stock.
Consider investing in rental properties
It could be a form of house hacking. This would allow you to live in your investment property when you are renting out rooms or units. This means that the investment property is occupied either by renting out rooms or renting out units in a multi-unit building. House hacking lets the investors buy a property with around four units and could still qualify for a residential loan. You also can buy and rent out an entire investment property. You can find the one with combined expenses that are lower than the amount you could charge as rent. If you do not want to take care of the tasks handled by a landlord, then you have to hire a property manager and pay for them.
Flip investment properties
When you invest in an under-priced home, you could renovate it with less expense and resell it for a profit. This is called house flipping. This strategy can be harder than it seems to be. There will be a huge risk as flipping would need a correct estimate of how costly the repairs would be.
Rent out a room
If you are going to the very edge of real estate, you could rent a part of your home. However, you do not have to take on a long-term tenant or potential renters.