Investing in real estate: monopoly style can be beneficial for you and your business,
Real estate is pure business of debt and taxes which will help you to build something you are passionate about to make,
Every piece of real estate increase in value every single year if its location is on developing mode,
First, we will understand what is the type of monopoly style real estate investing has,
Types of Real Estate
Residential real estate is the type of investment where people are attached emotionally with that piece of property because everyone needs a house to live on it with that they also dream of something good for their family,
Residential properties or real estate increases in value after many years because generally fewer people tend to change their house every year or the other.
2. Single & multi-family
Single and multi-family real estate has a good advantage of rent keeps coming in every month as many people tend to live on rent rather than buying the property,
Multi-family needs a bigger house with extra bedrooms and single one needs just one or two to fulfil their needs.
3. Apartment buildings
Apartment buildings have less plot area and build upon the base to the top of the building in this type of real estate investment you can take advantage of less area but more rents by building more flats in your apartment building,
This kind of buildings needs lots of security measures in the property because people live on floors and what is happening on the ground they don’t know to be safer side for them.
Commercial Real Estate used for shops and office buildings and in this type of real estate you can have some handsome return if your property is at good and main location of the city,
Real estate billionaires have made a lot of money through commercial real estate investing rather than others because businesses need offices and self-employed people also need shops and salaried person visit the office every day.
Industrial real estate majorly under accumulated by the government but if government plans to sell that piece of industrial property then you can have a big advantage because the government wants you to build industrial projects and plants from which they can generate more jobs and employment to the citizens,
You have more legal advantages in industrial real estate than another type of investment.
Retail real estate investment has shops low-cost real estate properties to be affordable for small business owners,
The retail category has a large number of real estate property but not that much return can be accepted from it because of the low volume of consumers.
Real estate investment trust REIT is a kind of revolution in the history of real estate investment because it is the only option where you can invest in through stocks and its liquid,
Whichever topic we discussed above does not have easy liquidity whereas now you have an option to invest in real estate through real estate investment trust where an official will do all the work and you just need to be their investor,
Just like you own a company shares and they pay you a dividend the same will apply in REITs.
How you can invest in real estate
- Research the market
Before anything else in real estate first, you have to research the market around the area you want to buy your first real estate investment property,
By researching all the goods and bad thing about the particular market you can analyse through the conclusion that the market will appreciate the value of my property in the long run or not,
Market Research is the base of real estate investment one of the main and important things in this business without it you won’t be able to build a profitable business.
2. Analyze the pros and cons
After researching the market now you have to come to the second step of how you can do monopoly real estate by analysing the pros and cons of that property which you have selected,
Through the pros and cons, you can have the idea of your rentals and profit for that piece of property.
3. Manage risk
The risk involved in every investment whether it is stocks or other investment so you have to manage your risk throughout the process of buying the investment property,
Manage risk includes not to overbought property which puts you in deep debt and you couldn’t overcome,
Managing the risk will make you taken a wise decision in your real estate investment.
4. Source financing
Finding financer for the property means using debt and debt will help you to pay less in taxes,
Source finance to buy the property and have your calculation ready of which how much will go in repaying your financing and how much positive cash flow will be there in your pocket,
There are lots of ways to finance your investment property just by giving your earning proofs.
5. Define an exit strategy
You must have to define when you want to exit from that particular investment because if something bad happens with that property you need to check and define the strategy to exit from it,
All realtors should define the strategy while planning to invest in the real estate market.
Benefits of real estate investing
- Tax incentives
By investing in real estate you financed it and that means you have used debt or OPM ( Other peoples money ) to buy it and taxes are calculated on earnings, not on debts so you have tax incentives and benefits with your real estate investment,
There are lots of tax benefits for the realtors and more or the less too much debt means zero taxes the government could not pay you taxes on banks money.
The only tangible asset which is real estate other than gold or silver which you can touch and feel,
The main benefit of it is that you can keep your eye on it if someone wants to destroy it than you can protect where in other investments your money cannot be seen so this is the big advantage of investing in real estate.
3. Cash returns
Real Estate has returned for you in cash in the form of rents, which means cash returns rather than come directly in digital form of money,
Cash is king but cash flow is the god because every month cash is flowing in your account by using debt and benefited from taxes the net return is yours only.
4. Property appreciation
Your investment property paying you cash every month and it also appreciates over the long period of time which is also a benefit for you.
Property appreciated so as your money in it and cash flow is a bonus from it.
So that is why real estate has more billionaires than any other industry.
What do you think about real estate investment?
Put your answers below in the comments section and let me know.
Hope it adds up some value and your time worth it.
Thanks for reading,
Meet Paniya ✍