One of the popular industries where you can invest your money is real estate, which involves buying or building of properties for rental income or selling. I understand that many people think to invest in real estate you need to be super rich, there are many affordable ways you can start with, and grow over time.
Starting and building one’s wealth may take different forms, but the most acknowledged way is through investing. Yes, you can inherit a fortune, but if you can’t grow that into more investments, sure that wealth will slip-off your fingers like water.
One of the popular industries where you can invest your money is real estate, which involves buying or building of properties for rental income or selling. I understand that many people think to invest in real estate you need to be super rich, there are many affordable ways you can start with, and grow over time.
Here are few options for going into real estate investment as a beginner:
This involves you buying a piece of land, develop plans, and seek external finance or potential partner for developing your land. Many people take loans from banks and buy luxuries, while that money can be used to start with buying small pieces of land for future development. Once you are able to attract the partner or financier, you can retain a certain percentage of ownership of that property through your land contribution, and that can become your first step in your real estate investment portfolio.
Flipping
This is a real estate strategy where you purchase a property, do renovation, appreciate its value, and re-sell it with a higher profit. It could also involve buying properties when the prices are low, and re-sell when prices appreciate. This can also be done with small capital, where you can buy a small house with low-priced value, make necessary renovations, and re-sell it.
Estate agent
This is a common practice where you become an agent for real estate transactions. You can become an agent for renting, selling, and buying, and for every transaction you do, you earn a commission. If you are aggressive enough and do multiple deals in a few years, you can accumulate enough capital and start buying your own properties. Another way you can do this is by exchanging your commission payment for shares in the sold property. To start this approach is easier, no initial capital is required. But don’t be a traditional “dalali”.
Rental property
This is a basic real estate investment approach, where you purchase a property, and rent it out. As I said earlier, you can get a mortgage, and instead of living in that house yourself, you can put it into the market for renting, and earn your rental income, and over a few years that can generate another property,
Invest in real estate investment vehicles
Another simple and easier way to start investing in real estate even with a little capital to invest via a real estate investment vehicle. This is when a company collects small investments from different individuals and use the money to invest in real estate, and manage on behalf of these individuals. So if you are an employee, student, or an entrepreneur, you can explore these and other options, and start making savings today for investing in the future.
Salum Awadh is a Business & Financial Consultant, You can contact him via [email protected], 0656006106, www.ssc.co.tz, and he is also the Founder of SSC Properties.
