By Sukhraj B.Nahar, Chairman and Managing Director, Nahar Group |April 21, 2017

Real estate offers myriad of options to investors. Here is the list of popular investment buckets that would help in fetching lucrative returns in future.

It is a known fact that investment is the easiest route to build wealth. Chances are when you think about investing in real estate the first thing that comes to mind is your home. For many people, their home is the single largest investment they will ever make. One of the main difference between investing in a piece of real estate as compared to stocks or bonds is that real estate is the uncertainty involved in the market Comparatively, real estate exhibits lower risk factor, though cyclical risk is unavoidable, it assures higher returns from long term perspective. So, if you plan to invest in real estate, here are multiple ways to park your money in the sector and earn higher returns:

 

 

Real Estate Limited Partnerships:

A real estate limited partnership (RELP) is similar to a real estate investment group: It is an entity formed to purchase and hold a portfolio of properties, or sometimes just one propertyonly it is in existence for a finite number of years.

Real Estate Investment Trusts (REITs):

A real estate investment It is a known fact that investment is the easiest route to build wealth. Chances are when you think about investing in real estate the first thing that comes to mind is your home. For many people, their home is the single largest investment they will ever make. One of the main difference between investing in a piece of real estate as compared to stocks or bonds is that real estate is the uncertainty involved in the market Comparatively, real estate exhibits lower risk factor, though cyclical risk is unavoidable, it assures higher returns from long term perspective. So, if you plan to invest in real estate, here are multiple ways to park your money in the sector and earn higher returns:

Real Estate Trading:

It is also known as buying low selling high. Pure property flippers will not put any money into a property for improvements; the investment has to have the intrinsic value to turn a profit without alteration, or they won’t consider it. Flipping in this manner is a short-term cash investment.

trust (REIT) is created when a corporation (or trust) is formed to use investors’ money to purchase, operate and sell income-producing properties. REITs are bought and sold on the major exchanges, just like any other stock. Much like regular dividend-paying stock, REITs are appropriate for stock market investors who want regular income, though they offer the opportunity for appreciation too./p<>

Real Estate Mutual Funds:

Real estate mutual funds invest primarily in REITs and real estate operating companies. They provide the ability to gain diversified exposure to real estate with a relatively small amount of capital. Depending on their strategy and diversification goals, they provide investors with much broader asset selection than can be achieved in buying individual REIT stocks, along with the possibility of fewer transaction costs and commissions.

Rental properties:

This is an investment as old as the practice of land ownership. A person will buy a property and rent it out to a tenant. The owner or landlord is responsible for paying the mortgage, taxes and maintenance of the property. Ideally, the landlord charges enough rent to cover all of the aforementioned costs. A landlord may also charge more in order to produce a monthly profit, but the most common strategy is to be patient and only charge enough rent to cover expenses until the mortgage has been paid, at which time the majority of the rent becomes profit.

So, real estate is the only sector that thrives and flourishes. If you invest in real estate, your investment will remain protected against the risks of high inflation in the future. Real estate is also attractive when compared with more traditional sources of income.

Publication / Source: 99acres.com