Tuesday, September 24, 2019

Why is buying a house considered a good investment

Real estate or bying a house considered a good investment

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Real estate is one of the most common investments. However, it is not easy to manage in that world, especially if you do not have a good knowledge of the market. We tell you how you can get started. Ahead!

1. Direct owner

It is when you buy a property, which can be a house, an apartment, a building and even summer cottages, and other people pay you to live there, explains The Balance site.

However, it is not a passive investment. "People think that it is easy money, that it doesn't give much work, that tenants will pay on time and that the pipes will never break," says Leonard Baron, a professor at San Diego State University and author of several guides on the subject , in Business Insider.

Some enter the market buying a small apartment building. You should investigate well if the property will give you profits and not rely on the experience as a homeowner. It's very different.

2. House hacking

While it is similar to the previous one, it is a simpler way to get started in real estate. It is when you buy a property to live, with the intention of renting an extra room or other units, whether it is a duplex or an apartment building, says the Nerd Wallet site.

3. House flipping

It is when you buy a property at a very good price, almost always because it needs repairs, you take care of making them and then you sell it at a higher price to make profits.

Nor is it a simple investment, since it represents a risk and requires experience. An advice? Partner with an expert. You can contribute capital and he experience.

4. REITs

It is the acronym for real estate investment trusts (real estate investment trust). It is when you buy shares of a company that owns commercial real estate, such as office buildings, apartments and hotels. The good? They tend to pay high dividends, according to Nerd Wallet.

“It's more like buying stocks or investing in a fund. It's completely different from owning real estate, ”says Baron.

5. Rent a room

Do it, for example, using Airbnb. Thus, you will not have a tenant for too long and you will have the protection of the company. It is a simple way to start and see if you really like it.

Are you ready to make money in the world of real estate? Start small and gain experience. Ahead!

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