What is the best way to invest in real estate?

2 Answer(s) | Real Estate News

RE: What is the best way to invest in real estate?

In the recent time real estate market has crashed and property prices sunk in the last few years. Coronavirus pandemic further spoil the real estate industry amidst slowing economy. This COVID-19 has proved as a blessing in disguise for investment hungry people. The property prices in various key micro-markets across the country have reached a decade low prices. Current time has plenty of opportunity to make wealth, be it the stock market or real estate. A wise investor always likes to diversify his investment portfolio and minimize the risk.

Eventually, the stock market is very volatile due to several micro and macro economic conditions amidst coronavirus pandemic. But real estate has always remained less volatile when compared to stock market investments.

There are plenty of ways to invest in real estate are as follows:

  • Buy undervalued property – There are many people who need the money due to huge business loss amidst a pandemic situation. There are many distress sales of real estate property options are available in the market at attractive rates. You can buy now at a lower value and wait for the market to recover, then sell the property to make gains.
  • Become a landlord – This is one of the oldest ways to invest in real estate. Have a real estate property put up for rent and earn continuous income throughout the year. In metro cities, there is a huge gap between demand and supply of properties. Renting property could a good way to invest in real estate.
  • Invest in REITs – Real estate investment trusts (REITs) a modern  professional way of doing investment in real estate. This kind of investments is managed professionals to safeguard investors’ money. REIT allows you to invest in real estate without holding any physical possession of real estate. These are high paying dividend stocks which own office spaces, shopping malls, retail space, etc.



Answered on August 5, 2020.
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Investors can consider investing in real estate mutual funds and ETFs (Equity Traded Funds). These are also professionally managed investment tool for those investors who wants to invest in real estate without any physical possession.

Investing in a second home is an emerging concept in India. People are investing in their second home as a vacation house. Property owners of this kind of second homes earn by renting the property.



Answered on August 6, 2020.
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