The real estate market is currently being driven by millennials and baby boomers and if you are a millennial caught in a quarter-life transformation then you are at the right spot! In the world of investment, real estate serves to be a key player. Infact, the latest trends as observed by experts have shown that millennials are increasingly buying rental properties across borders and building multi-million dollar real estate portfolios.
Properties like 4 Bedroom Villa in Sharjah, an apartment complex in Dubai and a condo in NewYork, all seem like lucrative options to most. So, if you are amongst these ardent and passionate individuals, bent upon changing and building their life, then read on. In this blog, we discuss how millennials can start real estate investments and some handy tips they can follow.
Why invest in real estate?
If you think about it, one of the most crucial questions you might be asking yourself is, “why should I or anyone invest in real estate?” Well, the answer to that question is simple. Real estate takes pride in being a distinct asset class that is easy to understand. It has the capability of enhancing the risk-and-return profile of an investor’s portfolio, thereby making it a credible source of investment.
Real estate investment offers numerous benefits like cash flow, tax breaks, equity building, and even a hedge against inflation. To add cherry to the top, it has competitive risk-adjusted returns as well. The same, however, cannot be said about other investment options in the market.
Oftentimes, certain intricacies accompany the investment market. One of them is the “diversification” of your portfolio. As an investor, you need to build rapport. You need to diversify your options to ensure liquidity and reliance, and a real estate investment offers you just that, thereby, adding zest to this investment option.
Options for real estate investment
There are numerous options you can choose from in the real estate market. We have picked out some of the best ones for you.
Buy a rental
If you are looking for a way to ensure extra cash flow, then renting a real estate property is a great option. To safely do this, you will need to purchase a house with a combined monthly mortgage payment, home insurance payment, and property tax payment. Make sure that these values are lower than the property’s rent.
There are numerous ways to ensure this – like buying in an area with high rents and putting a huge chunk of money down such that the mortgage payment gets low. The rental property can quickly form a semi-passive income source for you.
Flip a house
Since the pandemic, the real estate market has flourished all around the globe. One of the primary reasons is that the real estate business was never shut down. Governments around the world considered it to be an imperative niche, thereby allowing realtors and investors ways to stay connected.
A risky but lucrative option for real estate investment is flipping homes. Since property values are back on the horizon, it is an excellent time to start flipping. Flipping a house implies that you purchase a home under market value, fix it up and sell it for profit.
Rent a portion of your home
If purchasing a home seems tricky to you, then you could try another option. You can always test the waters by renting out a portion of your house. There are a lot of opportunities to do that. You could rent out a room or even your basement if you want. You could also buy a duplex and live in a single apartment while renting out the next one.
Buy a Villa
All around the world, especially in the real estate investment gold mine of Sharjah, you can find valuable options for investment. Luxury independent residences, Villa are one-of-a-kind investments. One of the most lucrative features of villas is the fact that they can be modified easily to reflect the changing taste and style of the housing market.
If you opt for a flat or an apartment, you lose this level of freedom. If you find a villa to be a suitable option for you, then a 4 bedroom villa for sale in Sharjah seems like a good fit.
Tips for investment
Before you commit to a real estate investment, here are some tips that might prove beneficial for you.
- Begin with a goal in mind
There might be a lot of temptation around you to get in the game of real estate investment. But before diving head-first, you need to make sure that you are doing it for the right reasons. One of the most pertinent questions you could ask yourself is related to why you want to dive into the game. An investment in real estate has a long-term basis so before you go ahead and do that, think about the finer details.
- Take time out for research.
In case you are new to the game, you will need to follow the guidebook and gather insights. These rules will dictate your investment strategy; trust us, in the long haul, it’s the strategy that counts.
- Pick your market
As you continue down the road, you will find various asset classes from which you can choose to invest. Investments are not about hit-or-miss; it is imperative that you build a niche around the investment goals you hold.
- Make the right decisions.
There is a good reason why financing a property investment portfolio seems like a challenge to millennials. Homes and apartment complexes, after all, cost a lot. Still, there are ways through which you can finance your property acquisitions even with minimal funds at hand.
A significant chunk of homebuyers today are young millennials. Being an adult in this age and era demands that one keeps up with investment options. Thereby, it makes sense that these young adults would want to purchase assets that will help them grow in the long run. Real estate investments are lucrative opportunities and looking for ways to expand your business and fortune is always a wise choice. Safe Investing!