For most people, obtaining a mortgage or outright purchase are the only ways they are familiar with when it comes to owning and investing in the property market. But there are several other ways one can go about it. Owning property is one of the oldest forms of investment and still relevant in today’s world. Even if you cannot afford the traditional means of investing in properties, you can take advantage of other forms available and we have highlighted some of them below:
Real Estate Crowdfunding
This is a relatively new approach to owning real estate. Basically, property developers in need of funds raise money from individuals in return for a stake in the property. This is particularly useful for people who have a strong desire to own real estate and a sizable amount of money not enough to either obtain a mortgage or out rightly buy a property. As easy as it sounds it has its own set of drawbacks. One we can rightly point out is that an investor cannot easily opt out of such contracts.
Inheritance
You could be one of the lucky ones who get to acquire possessions and properties from your parents and grandparents. In this scenario, you will need to change title documents of said property to reflect your name as the new owner, which will require a reasonable amount of money but that is nothing compared to the benefits you will obtain from inheriting it. You can easily earn rental income from such properties which is a win considering the fact that it required little effort to obtain the property in the first place. Bear in mind that you will also be liable to pay any fees and charges owned by the previous owners
Vacation Rentals
This has been around for a while. An arrangement whereby individuals get to own and use a property at their disposal for a set period of time in a year sounds like a win. This manner of property ownership is particularly useful for those who would like to have a second home for leisure purposes and would rather have it occupied when they are not living in it.
Real Estate Stocks
Buying stocks is another less capital-intensive real estate investment you can look into. Start by studying the market to understand trends or talking to your broker about potential recommendations based on their expertise.
What other real estate investments can you think of? We would love to hear you thoughts and comments.
