Sounds improbable, isn’t it? But hey, it’s possible. There are many ways how you can invest in real estate without money. Find out seven outstanding options how you can reap the benefits of investing in real estate without actually spending a penny for the purpose. Have a read.
Listed and traded on exchanges like stocks, ETFs include securities traded within the country and include real estate-related industries like home construction, commercial properties, hotel chains etc. ETF purchase would allow you to invest in properties across the country. Though the move comes with its own set of risks yet is a wonderful option as it offers chances of rich return. And in case the returns fall below expectation you can sell the ETFs just like stocks.
Real Estate Investment Trust
REITs present another great option for all those who want to invest in real estate without spending any money. Traded on stock exchanges REIT scan easily be purchased or sold just like ETFs. One can make an initial investment of Rs. 2,00,000 in REITs and expect a return between 8 – 14%. The risk in such a move is at its lowest as REITs are far less fickle than the stock market, mutual funds or gold.
Online crowdfunding platforms allow you to raise funds from friends, family members, individual donors and investors in return for an annual fee between 0.5-3%.
In our country, there are three 3 major crowdfunding options. However, the equity-based model is the one most commonly used for crowdfunding practice in real estate.
As you have the option to zero in on the property you intend to invest in, the risks are low while the estimated returns are high and can be up to the tune of 20%, particularly if the property falls in a growing residential locality in an up and coming city.
Short Term Rentals
Well-equipped apartments, these are rented out for a shorter duration. Contrary to hotels which demand greater investment, STRs require far less investment as they only allow flexible staying options. This offers an excellent option for homeowners to supplement their income from their unused rooms or homes.
This involves a move where one buys a property, gets the renovation done and sells it for a profit. To achieve greater profit people buy properties that are available at lower than the market price or belong to owners who urgently need cash. Once they gain possession, the buyers start the hunt for potential buyers. A seasoned investor flips several properties without wasting any time and is forever on the lookout for such properties.
Real Estate Syndication
Real estate syndication involves finding buyers to raise capital for bigger real estate deals like condominiums, hotels and commercial spaces. In lieu of funds provided, the buyers are given partial ownership. However, to get involved with real estate syndication, the syndicator must have an accredited investor status.
Alternative Investment Funds
AIFs make investments in startups, early-stage venture funds, infrastructure funds, real estate, equity, and more. SEBI declare AIFs as privately pooled funds that can either be open-ended or close-ended, depending on the category. Though AIFs are more rewarding than mutual funds, let’s not forget that they need a considerable minimum investment of INR 1,00,00,000 which makes the perfect for high-net-worth individuals.
If you are planning for real estate investment in the country then look not beyond SMC Realty which can fulfill your dream of buying projects from top developers of the country at the most competitive rates.