Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts

Wednesday, April 15, 2015

Investing in real estate: Where to begin?



Image Source: alrayanbank.co.uk


Even as the long winter has delayed the start of the spring housing market frenzy, this season remains promising. While the period from April to July is traditionally the busiest for home buying and selling, this season is the first in a while that has the housing market clearly in recovery.

Those looking to venture into real estate as an investment might be encouraged by persisting low interest rates and the high demand for rentals that are clear signals for opportunities waiting to be seized. Beginners to this investment type have two basic options:

First, REITs are perfect for starter portfolios. REITs are publicly traded companies that invest directly in real estate with properties and mortgages. By law, these companies must pay at least 90% of their income to shareholders in dividends. Adding a REIT to the portfolio can complement stock and bond funds.


Image Source: therealsingapore.com


The second option is to directly buy a real estate property. Contrary to popular belief, however, this type of investment is not easy money. Managing properties requires a lot of work to ensure that profits come in. This will involve managing tenants and the regular maintenance of the property. Gaining profits from property ownership requires finding a good balance between tenant needs and the owner’s interests.



Image Source: jennifertoyama.com


The Remada Company is headed by real estate investor and banker Steve Liefschultz. For more resources about investing in real estate, visit this Facebook page.