People often think property investing is about building a portfolio of residential rental properties, but that is just one of several ways to generate wealth through property investment.
House Flipping
Although building material costs have escalated in recent years, renovating and selling properties can still be a lucrative way to make money. You just need handyperson skills or good contacts, as well as market insight and capital to see you through the project.
If you have a good eye for a bargain-buy in a yet-to-boom location, you can make a profit through house flipping. Renovators with upfront capital to spend and a vision for enhancing a property’s best features often do well through house flipping.
Real Estate Investment Trusts (REITs)
A Real Estate Investment Trust owns and manages properties that generate income. They could be apartment blocks or commercial real estate like shopping centres, office buildings or hotels.
Property investors buy shares in REITs to build a diversified portfolio of residential and/or commercial properties, thereby earning a portion of the income each property generates.
ASX Property Stock Investments
Investing in property stocks spreads your investment across diverse real estate assets. Property stocks can include residential, commercial, industrial and retail properties.
When you invest in real estate through the stock market you can receive dividend payments which bring a regular source of income. Property stocks are also quicker and simpler to sell than physical real estate, so they are good for investors who want easy liquidity.
Residential Rental Properties
Buying a rental property will always be one of the common ways to invest in real estate, providing rental income and asset appreciation over the longer term. For many landlords, Victoria’s recent rental property reforms and increased land taxes have made this form of property investment unpalatable, but if the numbers stack up it remains an option.
Of course, with all forms of property investment it is wise to seek professional advice and explore the tax implications before you begin.
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
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