For many, real estate investment is a great type of investment for the future. It brings many advantages, including flexibility and tax advantages. Also, if your property is in a good location and well-maintained, you can always get a profit.
However, investing in real estate in your home country may not always yield the best results. If you’re looking to explore international real estate options, you need to research them.
In this article, we will explore the benefits of investing in real estate and the ways to invest in real estate.
Table of Contents
Benefits of Buying Property As An Investment
There are many benefits to investing in properties abroad. One of the advantages is the possibility of getting residency in some countries. Other advantages include tax benefits and affordable property prices.
Investing in international real estate can be more affordable than investing in real estate in your home country. Particularly in emerging markets like Portugal, property prices are still lower than in other European countries. Also, investing in a growing market like Portugal can provide the potential for higher returns than in more established markets. Let’s delve into more details about real estate investment.
Generating Income
One of the benefits of investing in residential properties is that it provides a reliable source of passive income for an extended period. Additionally, the real estate’s value increases each month as rental income is earned, especially if it is situated in an upscale location with the potential for future appreciation.
High Demand
Real estate investment has a significant advantage in that people will always need a place to live in. In this way, the demand for housing continues to grow. This ensures that investing in real estate provides a consistent and higher return on investment.
A Physical Asset
Buying a house provides a tangible investment that you can see, unlike the stock market, which is vulnerable to fluctuations. Owning a physical investment is a strong motivation to make a real estate investment. You can always visit, lease, improve, or live in the property.
Flexibility
Investing in real estate provides more flexibility. After purchasing a property, you can decide to flip it or sell it, rent it out, make developments, or add parcels. However, with stocks or bonds, you only have the option of holding or selling. Real estate investment gives you more control, while other investments depend on external factors.
More Cost-Effective Than Renting
When compared to renting a house, obtaining a mortgage is more cost-effective. With a mortgage, you have control over what you pay, and you also have the opportunity to cover your mortgage by renting out the property.
Ways To Invest in Real Estate
With the expansion of the industry and the Internet, numerous investment options have become available. These include crowdfunding, rental property, REIT, fix-and-flip, JV partnership, and wholesaling. Let’s take a brief look at three of the most popular methods of real estate investment.
Rental Property
One of the most conventional methods of real estate investment is to purchase a rental property and lease it out. You can handle the paperwork yourself, or you can hire a property management company to work on your behalf.
Another option is to rent out one unit of the property while you live in the other units. Investing in rental property is a lucrative investment not only because it generates rental income but also because it is an asset that appreciates in value over time. Also, you can sell it whenever you want.
REITS
REITs, or real estate investment trusts, are comparable to mutual funds. These are companies that own various types of commercial real estate, such as office buildings and hotels. Unlike traditional physical real estate investments, REITs are traded on stock exchanges, so you can purchase shares and receive quarterly dividends.
House Flipping
House flipping is a real estate investment strategy that requires a shorter-term commitment. It involves buying a property that needs renovation, improving it, and selling it for a profit. This method is ideal for experienced investors.
One of the benefits of house flipping is that it offers the potential for high profits. Also, it can provide valuable experience in the real estate industry.
In short, real estate investment can offer you various benefits. If this sounds exciting, don’t wait longer, and start your investment process today!
