Over the past few years, there has been a lot of volatility in the bond and stock markets. This has made investors look for a way to shield themselves from this. They have turned to investing in assets such as real estate. It is important to note that the prices of real estate are becoming lower making it easier to invest in them. Finding out how much money is needed to invest in real estate can be such a hard task.
However, there are ways of investing in real estate and a rough estimate of what is needed.
Investing in real estate investment trusts (REITS)
This is the cheapest option to consider investing in. One can trade these securities on major stock exchange markets and then investing in real estate through mortgage investment. These REITS end up offering a very liquid method of investment in real estate. They also provide low starting capital options for the real estate. They help one access real estate with as little as the price of one share. The starting investment ranges between five hundred and two thousand five hundred dollars.
Investment in real estate investment groups
They are also known as private partnerships. These are meant for those looking for ownership of physical assets rather than shares of a company. By use of operating companies, these groups allow investors to buy a portion of or units within a living space in a building or an apartment. The work of the operating company is managing all the purchased units at a percentage of the monthly rent. These groups make owning property easy and cost effective. These groups require between five thousand and fifty thousand dollars. The partners pool their resources together and then co-own the purchased property. Besides ownership of the property one gets returns on their investment on a monthly basis.
Buying the property alone
This is the most expensive way though one becomes the sole owner of the property. This involves incurring many costs. In addition to that, the buyer is required to come up with 20 percent of the value of the property to be given a loan by the lender. There are also the closing costs involved which make it a very expensive route to take. These coupled with high interest rates end up making the loan expensive too.
One can decide on through which means to invest and then decide on how much is needed to invest in real estate then go for it.…