06 Juli, 2018
How to invest in Real Estate without buying?
Real Estate is a global industry that has existed for a very long time. It continues to exist in our everyday lives in many ways beyond what we would imagine. Whether you’re at work, home or even on holiday, you are within this exceptional industry that continues to grow. Ever thought about how to invest in Barcelona’s Real Estate without buying property?
1. Real Estate Mutual Funds (REMF)
A Real Estate mutual fund (REMF) is made up of securities, usually stocks, of companies that purchase real estate with money attained from investors. REMF’s are favourable as you can start with small investments if you find it hard investing in real estate directly. This allows rewards with good returns in the case of low investment. Experts and professionals will be handling your funds making sure you are investing in a safe option.
Benefit from investing across multiple properties instead of one, giving you diversity. Additionally, enjoy benefits from having the flexibility of investing the amount you desire and have low management involvement. Great returns and portfolio stability are achieved as the fund experts balances out the high-risk investments lowering total risk. As a result, this is a low involvement, low budget investing option and therefore a great way to start in the real estate business. This is the easiest way if you want to know about how to invest in Real Estate without buying!
2. Home Construction
The real estate industry has seen growth in recent years thanks to the limited housing supply meeting client needs. Therefore we forecast the construction of new houses and renovations for the next decade.. Consequently, the construction side of real estate also has its rewards and would be a smart move for you. Soon the developers will have to develop new districts and renovate the existing ones. Investing before they become more popular amongst investors would put you a step ahead of everyone else. Home builder companies are not difficult to find and given a bit of your time and research, you will find the one that fits you best.
3. Real Estate Investment Trusts (REIT)
A Real Estate Investment Trusts (REIT) is a company that owns, operates or finances income-producing real estate. For a company to be classified as a REIT, they must meet certain regulatory guidelines. This makes for a more reliable and safe investment option for you and your money. The underlying principle of how most REITs operate is by leasing space and passing on collected rent payments to its investors. They do this in the form of dividends they have to pay out to follow regulations. Therefore, they distribute at least 90% of their portfolio’s income to shareholders offering you guaranteed rewards. Another option allowing you to start with a low commitment, avoid dealing with tenants and is easy to start.
Now you know all of our methods on how to invest without having to buy! Investing in the real estate industry is a decision that will give you rewards long term. When you invest in Real Estate, you make a safe investment. You minimise risk and maximise return whilst adding diversity to your portfolio. If you are not convinced and would like to buy property, have a look at our available properties here.