One for the record books, last years housing market certainly tightened people's inventories and we seen a dramatic dip in mortgage rates. And some of us were hit by housing price which were seen to rise just over 10 percent, which would have been great if any of us were invested in those particular retail projects at that time but for those unfortunate enough not to have been, looking at it, it seems to be even harder to get into real estate this year if you’re lacking money for a down payment.
Not to mention the fact that because of the raise of house prices last year, could that mean there is going to be a dip in this years? Which is seriously nerve racking if you’re looking to get your first bit of exposure into the retail market.
But not to worry, whether you feel like you’re too late to surf the raising wave that is house price inflation or you’re to scared to ride the investment bull incase of new lows this year, we have some ‘safe ways’ that let you know how to invest in real ease without buying property, leaving no ties to the things you own if you decide that real estate isn’t for you.
Beyond the obvious fact of being tied to a whole property is scary for beginners, becoming a landlord can be a stressful time, especially when you have to balance work, family and your hobbies along with this new commitment but investing in the ways below completely negate this weight on your shoulders and you can leave someone else to do the heavy lifting.
Real Estate ETF’s
Essentially Real Estate ETF’s are like stocks which are exclusive to Real Estate Companies such as Vanguard Real Estate which is one of the largest public companies, perfect for novices and first time real estate investors.
Despite what many people think, there is money to be made here and you can get somewhat similar profits than you would if you actually owned the property, with an increase in interest rates which make it a little harder to gain a profit, it's worth it for the amount of stress you’d associate being a landlord for one of these properties in your digital portfolio.
Invest in Real Estate Companies
If you’re looking to get closing to a company, and one to be a little more involved - sort of talking directly to the horse's mouth if you will - then investing in a company that is involved in Real Estate is your best bet.
Simply because not all REC’s are involved with ETF’s and REIT’s, with this though you’ll have to do a lot of your own digger as they can be tricky to find but if you’re someone who likes to be on a bit more of a personal level, whether that's for networking cases or because you have trust issues then this is the way to go.
Some companies that focus on real estate include but not limited too:
Here is a great list of actual Real Estate Companies that you could get yourself involved with, of course make sure to do your own digging so you know where your money is going and what sort of commercial or residential projects you’ll be helping to create and complete.
Hire a Property Manager
Now we know you’re here to find out ways to buy property without actually physically owning it, so ‘Hire a Property Manager’ may seem a little strange to have on this list, but this is truly a way you can have your cake and eat it too.
If you’re someone who’s looking to get a more personal level with your property something you can actually physically touch and feel and something you can point out to your friends or family, then renting property and letting your property manager do all the heavy lifting for you might just be a great idea.
This way, you get to feel like a landlord without actually doing any of the hard work, whilst giving your property manager around about 10% of the gross rent you receive from the tenant, you may want to consider getting yourself a finance broker to help you with renting property since this method can cost you a little more than all of the others included and its nice to have some help with your finances so they can too do all the hard work for you.
I may have just scared most of you off by mentioning ‘finance broker’ but whether you’re looking for a finance broker in perth, Manhattan, downtown London, with a little research you’ll be able to find a finance broker that is going to be right for you and your needs, after all they are better than the banks
Real Estate Investor Money Loans
Now this may be a small niche of you. But if you’ve already got a decent amount of cash stacked up, then I’d honestly recommend going this route if you really, really don’t want to the stress of being a landlord but you have a considerable amount of money to invest in real estate. In layman's terms, you’re essentially a money lender directly to an real estate investor. The way you make your money is that you take a % based on the end result, but that is to be determined between you and the REI as just like in business, every deal is unique.
Typically though, you’ll want to work with someone you’re familiar with, whether this is a friend or someone down the grape vine, whoever it may be we suggest you work with someone you’re familiar with because sometimes it can be uncomfortable working with a stranger for the first time, especially if you're new to real estate.
Invest In Real Estate Online
Lastly if you love jumping on the latest trends, then jumping on one of these companies services that how recently cropped up will help you get involved in real estate investing. You are able to invest in commercial and residential real estate investments and receive cash flow distributions in return, and just like the other options on this list, someone else is doing the heavy lifting whilst you reap the rewards.
Whilst there is no one standout company that we can confidently recommend, since they all havent been around long enough for us to make a property judgement, Fundrise returned an average of 11.4% on the invested dollars in 2017 and a further 9.11% in 2019.
The best part is you don’t even need to be an accredited investor to open an account, meaning if you’re new to the market, then this is your chance to get in on something thats shiny and new and that could potentially give you a place to invest your cash and reap the rewards of owning physical property.