Do you want to diversify your investments, grow your portfolio, keep your cash flowing, and reap the benefits of capital gains for your retirement plan or your child’s college fund? Purchasing a real estate property is one of the most profitable investments out there.
Real estate properties are tangible assets, in which values usually appreciate, leverage equity, and become eligible for tax deductions. You don’t have to fit a specific criteria to invest in real estate. Anyone with enough patience and focus (plus money and time, lots of them) to prepare and do in-depth research can.
Depending on which strategy suits you and your lifestyle, the following are ways to make money and build wealth through real estate investments.
1. Rental Properties
One of the long-term investments that creates passive income is purchasing a residential property, and renting it out to renters. Moreover, rental properties are the most popular strategy, because people always need a space to temporarily stay. Therefore, finding renters that will pay you leasing money is highly achievable, especially if you enlist your property in property portals, such as Enta.
2. Fix and Flip
The “Fix and Flip” is a strategy wherein a real estate investor buys a real estate property in bad condition, renovates it to increase the property’s value, then resells or rents it out. Keep in mind however, the significant risk of losing your money if rehabilitation costs are miscalculated, especially if you’re not well-versed with your target market, as well as their demands.
3. Home Ownership
The most common and universal way to build wealth is purchasing a residential with land property, or known in layman terms as “house and lot”, for you to live in. The biggest advantage of owning a house is having total control to remodel your house without others’ consent. Once the worth of your house has increased over time, you can then sell it at a fair price and earn profit.
4. Vacation Rentals
Another strategy that provides you passive income is purchasing a residential property in the country’s tourism hot spots, and renting it out through listing sites. In purchasing properties for vacation rentals, consider the location of the property, and the time in which you bought it, as it affects not only the capital you sow, but also the profit you reap.
5. Distressed Sale
A “distressed” seller is someone who sells property for a price lower than its market value, because they need the money right away, even if they suffer financial loss. Although distressed sales are rare, it allows you to earn, while possibly helping the seller who is in dire need of funds to pay off their debt.
Make Money and Build Wealth with Enta
Making money and building wealth doesn’t happen overnight, but it is possible, if done properly. Are you ready to start your journey towards financial independence, but unsure of which residential properties to invest in? Let Enta help you make the right choices towards a life of comfort and security. Browse our website and inquire for residential property listings, or read through Enta’s blogs to keep you updated on informative articles related to real estate.