Investing in real estate property is one of the best things you can do to grow your wealth. However, it is one of the more expensive investments compared to other investments such as stocks and shares. Nonetheless, people don’t know that you can invest with very little money as well. So, if you want to invest in real estate, whether that is a commercial property in Hull or real estate in Dubai, here are some strategies to help with that.
No Money Down Property Investment
In the UK, you can invest in real estate without putting any money down. With the benefits of investing in real estate property, this is something to consider. It helps to diversify your portfolio and offers more security to your investments. Yes, there will be a lot of work in terms of managing property however, there is more stability with owning this property.
One of the main benefits of owning property is that over the long term, you know the value of the property will increase.
Property isn’t really a passive investment. Some people might say it is but you will likely have to do some form of property management, no matter how good the condition of the property is. Additionally, this will be a long-term investment where the value will increase over time. Then eventually, when you no longer want to let out your property, you can cancel it.
Take A Lodger Into Your Home
Now, this is for those who already own property and live in it. You may have a few spare rooms in your home that you no longer use because your children have moved out or, you just bought a property with a spare room because you could afford it.
Now, you can rent your room out privately or you can use the government’s rent-a-room scheme which would give you £7,500 tax-free. However, if you share your home with a partner then the allowance is halved. If you don’t want to use the scheme then consider recording your income and expenses on the property pages of your tax return.
Real Estate Investment Trust (REIT)
A real investment trust is a company that finances, owns or manages a property that generates income. Usually, it will be a portfolio of both residential and commercial property. More often than not, they will trade on the stock exchange.
The property that is usually on a portfolio of a real estate investment trust can involve anything from a warehouse, shops, hotels, offices or residential properties. However, they will usually consist of commercial properties.
The main positive of a real estate investment trust is that you can build a significant amount of wealth without having to worry about managing the property such as getting water damage restoration if there has been a leak. Managing commercial property can be difficult and you need a lot of contacts to help you with any issues that you may have.
Consider A Joint Venture
A joint venture is also a great opportunity that you can invest your time and wealth in. Now, you need to pick the right people you wish to do this with. It doesn’t have to be an even partnership either. You only need to invest a small portion to be part of this investment. Yes, you won’t get as much back compared to the other investor however, you can only invest with how much you have. If you want to have more of a contribution then save more money so you can invest this money.