Strategies for Investing in Real Estate

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Do you intend to plunge into real estate investments? Well, you won’t be alone in this regard. Already, 20% of Australian households have at least one investment property. So you will be in good company.

However, if you want to stand out, you need to consider as many real estate investment options as possible. There are many ways to make money via real estate. Here are some of them:

   1. Buy, build, and sell homes

Some people can handle the process of building a home, while others can’t. If you have no problems dealing with the headaches that come with developing real estate, you are in an excellent position to make money. You can partner with a reputable residential property development company and have them build a home for you.

If you want to ensure that your home is easy to sell, you need to opt for a standard home with turn-key features that will appeal to many buyers. In this case, it’s not about what you want but what most people want to see in a house.

Once the home is complete, you can stage it and try to find buyers. The median price for a home in Townsville is about $338,300. So if you target buyers within that budget, you can make decent profits.

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   2. Buy, build, and rent

The real estate market tends to appreciate with time. So if you don’t consider the prices of real estate in Townsville as favorable for sellers, you can opt to rent out your space.

Research shows that the number of homeowners has declined in the past few years, with 66% of Australians currently owning a home. You need to target those without a home. Being a landlord/landlady is an excellent way to generate a regular income. And in the future, if you are tired of renting out your investment property, you can sell it.

You can also lease your property to tourists looking for vacation rentals. With platforms like Airbnb, it is now much easier to reach out to these kinds of customers. And you can make more money this way than renting out your property to regular renters.

   3. Invest in REITs

Real estate investment trusts (REITs) allow you to invest in multiple commercial properties like apartment buildings and hotels. In Australia, these trusts are known as A-REITs. The managed funds enable you to get a share of the pie even when your investment budget is not large enough to buy a complete commercial property. The minimum amount required to invest in a REIT is $500.

If you are still new to real estate investing, consider an A-REIT as an investment option as you look for the ideal piece of land to build your residential property on. It will give you a taste of the property market.

The real estate market offers you the chance to become an investor in properties that will appreciate with time. You can develop and sell homes, become a landlord, or own a share of REITs, among other things. As time goes by, you can diversify and do a little bit of everything. That way, all your eggs will not be in one basket.

Design Solid is a community of home designers, home remodelers, and DIY-enthusiasts. We are an online magazine that publishes articles, features, and essays on all things home improvement, whether it’s the latest house remodeling techniques or the hottest interior design fads from around the world.

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