Amir Sibboni

Real estate professional and father. Enjoy watching sports particular basketball.

Best Ways to Invest inReal Estate

The popularity of real estate hasgrown substantially over the last fifty years, which has made it a viableoption for investment too. People are showing more interest in investing inreal estate. On the other hand, it is not easy to buy the right property andearn profits from it, especially if you are new to real estate investment anddo not know where to look for when investing in real estate.

Real Estate Trading

For people who are willing totake big risk to reap big rewards, real estate trading is the best option. Realestate traders purchase different properties and hold it for a short time. Theybuy rental properties that sell like hot cakes or buy undervalued real estateproperties and wait for the prices to increase before selling them to the rightbuyers. Their intention is to earn profit by making the most of the fluctuatingmarkets.

Rent Your Property

One of the simplest ways toinvest in real estate is renting. Buying a real estate property and renting itto a tenant is quite common and the easiest way to invest in real estate.However, homeowners will have to incur any expenses related to mortgage and willalso have to pay taxes. To overcome these factors and make profits, you have todecide on the rent of your house taking into consideration the locality and thesize of the house. Another advantage is that the value of your propertyincreases overtime, turning it into a valuable asset.

Real Estate Investment Trust

You can also create a real estateinvestment trust, which happens when a company uses investor’s money to buy andrun income properties. Similar to stocks, these properties are traded inspecial exchanges. The biggest benefit of investing in a real estate investmenttrust is that you can easily avoid corporate income tax by paying 90% of itstaxable profits. This makes it one of the best options to invest in real estatebusiness.

Leverage

What sets real estate investmentsapart from other types of investments is leverage. You can pay a fraction of thecost and get the custody of the real estate property you are interested in. Onthe other hand, you will have to pay the whole amount when buying stocks. Onceyou get the paperwork out of the way and sign the deal, you are the owner ofthe property by paying less than half of its total value.

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