Investing in real estate can offer lucrative returns in a short period. With a balanced portfolio, investors can also expect constant cash flow, tax advantages, greater returns, and much more.
Australian investment opportunities in real estate are currently high in demand. And why not?
According to a report, in February 2021, real estate prices observed their highest peak in 17 years in Australia. Melbourne and Sydney featured the highest spike in property prices, as high as 2.1% and 2.5%, respectively.
Here’s how you can, too, invest in real estate and reap its benefits.
Proprietorship of a rental property is the most straightforward way to start investing in real estate. Renting properties to tenants can ensure a steady flow of income and even lead to property appreciation in the future.
Managing tenants might sound quite a hassle. However, renting property is the easiest way to maximise your returns, along with availing several tax benefits.
Real Estate Investment Groups
In real estate investment groups, a company either constructs or buys a set of condos or apartments and then invites investors to buy these spaces via the company.
An investor can buy multiple spaces with no upper limit, just like mutual funds.
The benefit of REIGs is that you don’t have to manage these spaces. Instead, the company takes care of all the maintenance, marketing vacancies, and filtering tenants in lieu of a monthly fee.
REIGs are perfect investment opportunities for those who want to invest in real estate assets but don’t want the hassle of managing the assets.
Real Estate Investment Trusts
Real estate investment trusts refer to corporations that purchase and manage income-producing real estate. This real estate ranges from apartments, hospitals, hotels, storage facilities, resorts, warehouses, etc.
However, unlike REIGs, real estate investment trusts don’t construct real estate spaces with the motive of reselling them again. Instead, REIT develops and buys properties to manage them to diversify its investment portfolio.
You can buy REITs on major stock exchanges, just like stocks. REIT permits investors the opportunity to invest in commercial real estate proprietorship, which cannot be purchased directly without vast capital.
Online Real Estate Platforms
Online real estate platforms open the opportunity window for greater residential or commercial income-producing real estate.
Online real estate platform serves as a connecting bridge for investors with shared desires in real estate investment with developers. Investors who share the same objective do the investment in such big projects via crowdfunding on this platform.
The silver lining of an online real estate platform is that crowdfunding investment allows investors to diversify their portfolios in less capital. In addition, investors can invest in many projects.
You can even invest in Australian investment opportunities in real estate through online real estate platforms from your home country.
Real estate investment can be quite scary at first. However, leveraging your real estate assets guarantees a constant flow of high returns.
After all, as they say, ‘land never rots,’ and it’s true in many. You can always lease out your vacant spaces and secure a steady cash flow. There’s always potential and profit in real estate, irrespective of market trends.
You can also try availing services of investment companies in lieu of a small fee to diversify your real estate portfolio to open channels of even greater returns in the future.