Did you know that real estate is one of the investment portfolios where you can get a big rate of return? It’s also one of the stable investments too! If you are currently looking for something where you can put your money, real properties should be your top priority. However, the problem lies in the capital you need. You need a significant amount of money when buying real property. But, what if you are only renting your home? Does that make you unqualified to invest in real estate? Don’t stress out, there are better ways to invest in real estate without buying property! Here are your options:
1) Invest in REITs.
How much do you know about REITs? For starters, REIT stands for Real Estate Investment Trusts. These are companies that own or develop real estate properties. Before they can qualify to become REITs, they have to meet the minimum requirements first. Every country has a different requirement. When investing in REITs, you don’t need to buy a property for them. They basically work as stockbrokers and the only difference is that the stocks they offer are real estate stocks.
Sounds interesting, right? You can now invest in real estate without buying properties that are too expensive for average investors. With REITs, you will also learn to trade on stocks.
2) Get a property you can rent out.
If you are not capable to buy your real estate, you can find a property to rent out. Your possible goal here is to rent out the property to other people, like a residential home. You can still do your plans even if you don’t own the property. What you need to do is look for a house and lot or an apartment unit you can rent affordably. Don’t settle for expensive offers especially if you are going to put your mark up when you offer it to other people.
This is one of the ways you can invest in real estate without buying properties. You just need to let the owner know what are your plans for renting out the place. Some investors look for a good location near colleges so they can use the property as a dorm the students can rent while they are at school. Some turn it into a rental residential place to offer to small and migrant families.
3) Become a real estate agent.
Don’t have the capacity to buy or rent properties but you still want to get involved in the real estate industry? Then you can become a real estate agent! The greatest thing about this position is that you can get unlimited commissions for selling real properties. It’s like you are selling your own real estate because of the cut you get from the total contract price. Real estate developers need people who can sell their properties for them. If you are looking for a flexible yet high paying job, becoming a real estate agent is a good option. And after earning enough money, you can still buy your property or start your rental business while still selling properties to other people.
4) Use the extra spaces in your lot.
Are there extra spaces in your lot? You can turn it into real estate business too! For those who don’t want to buy real estate or spend on rental properties, you can recreate your home or add an additional unit in your backyard that can serve as an apartment or room for someone else. Maximizing the extra spaces in your yard will help you produce another source of income. This is a good option too since you only have to spend on the construction, not for buying the land you already owned. You can still participate in the real industry by offering the apartment or unit for rent.
5) Lease a commercial space.
If you think residential places or dorms
won’t work out for you, you can lease a commercial space instead. Even if you
don’t buy the land, you can still find owners leasing their land and building.
Use that opportunity to build the commercial spaces that you can rent out to
businesses and professionals looking for a good spot for their offices.