by Diala Taneeb and Mashvisor
Real estate is a huge industry and there are a lot of opportunities to invest in real estate. But where should you start? What types of real estate investing is best for you? Learning the basics of how to invest in real estate is the first step in choosing a strategy. You can then explore different real estate investment strategies and pick one based on your time, budget, and long-term goals.
Different Real Estate Investment Strategies
1) Buy quality properties and hold
These days there are good long-term investment opportunities because of all the cheap re-sale properties available in the market. If looking for an active, long-term investment, buy quality and hold is the way to go.
Buying an investment property as a buy-and-hold requires research about the market, neighbourhood, and property expenses. Positive cash-flow is very important with these investment because money is otherwise lost every month. With buy-and-holds, deciding on becoming a landlord or hiring property management is also something to consider. Can you manage the property yourself? Can you handle having tenants?
Not all buy-and-hold properties are the same. These can range from single condos and apartments to multiple apartment/ shop houses. Depending on location and cash flow, an investor might choose to rent out an entire building to a tenant (investor) or rent out individual rooms to individual tenants and also rent out the shophouse separately. Finally, apartment buildings/shophouses can range from small to double to entire buildings.
2) Airbnb Investment Properties
These are also a type of buy-and-hold property but are vacation or short-term rentals. When buying an investment property as a vacation rental, there are different things to consider. Can you manage turnover between tenants? What are the occupancy rates like in your area? What are the legal regulations for having a short-term rental or Airbnb investment property?
There has been an increase in the number of Airbnb investors as Airbnb investment properties have proved to be lucrative and sometimes produce more income than traditional investments. Search for the optimal real estate investment strategies in your area to find out if traditional or Airbnb investing has higher returns.