Six Ways to Earn Money in Real Estate Investment
The wise young man or wage earner of today invests his money in real estate. –Andrew Carnegie
Among the various ways to make money, none of them is as efficient and as rewarding as investing in real estate. More often than not, commencing your endeavor would require you to have a sizable startup, but you would be surprised just how lucrative the returns are. Today, in the age of digital media and online networking, there has never been a time wherein real estate investments are poised to take the center stage. With a smart strategy, good network connections and adequate capital, you would be amazed at the various money-making opportunities real estate investment has. Here is a list of ways you can be remunerated through trying your hand at it:
Over the years, the current home you are residing in would increase in value. As a result, should you resell or refinance it, you would be generating income. However, do not always take this as a guarantee as there are many aspects that would affect the fetching price of your residence. Factors such as home improvements, neighborhood changes and market condition all have a play in the worth of your asset, so be sure to take this into consideration as well. Additionally, if you are planning to see, do it while it appreciates as would an assurance of profit.
2.) Long term rentals
Renting out several houses and becoming a landlord takes a lot of commitment and determination. Additionally, you would need the financial discipline required in the initial stages in order to acquire several properties you can rent out. Though it seems like a lot of work is put into becoming a landlord, the rewards are extremely gratifying as it is a guaranteed continuous stream of profits for the remainder of your tenant’s contract.
3.) Short term rentals
Alternatively, if you are still waiting for your current properties to appreciate, you can always lease it out for a shorter duration to tenants. This will serve as a safety net should the returns be not as high as you initially expected—particularly in an unfavorable market condition for selling your property.
4.) Vacation Rentals
Another alternative is to purchase a vacation house and rent it out for a fee that is just a little bit higher than your monthly payments. Considering that getting a listing for your vacation home is as easy as signing up for Airbnb, it would be wise if you exploited this digital and online feature to the fullest by offering all of your properties that are currently not in use for rent. In this way, while they are not in use, your properties would not be sitting stagnant but generating income for you.
5.) Purchase raw land
Raw land is a lot cheaper than those you can buy at developed establishments. This can be a potential cash cow if you leased it out or continued to resell it to other investors or developers. To ensure that you would entice these potential tenants, be sure to pick a premier spot that could potentially be a location for their future projects. Take that into consideration and it will add to the allure of your land.
6.) Lease out commercial or office spaces
Today, offices and commercial spaces are incredibly in demand. Take advantage of this by investing in an office space and leasing it out to business professionals. Considering the high influx of foreign companies taking their business to the Philippines and with more emerging and expanding companies, having a commercial or office space for rent in premier spots in the city would guarantee profit for you.