FIND OUT FORMS OF REAL ESTATE INVESTMENT

Real estate investment also has many forms with different characteristics. Let’s learn about 5 popular forms with JJLand in this article!

Value investment

With this form, the profit (the difference between the purchase price and the selling price) investors get will come from the increase in the value of the real estate. Real estate prices can increase for many reasons such as the development of transport infrastructure in the surrounding area, more shopping centers…; The apartment was repaired and more spacious, bought more modern furniture…

This is considered a safe channel. At the same time, investors do not need to have really in-depth knowledge of the real estate market to be able to make a profit with this form of investment.

Surfing investment

Investors who choose to surf are often looking to profitably buy and sell undervalued properties (the purchase period is usually less than 6 months).

The advantage of surfing investment is that investors can quickly and easily gain profits using financial leverage in a short time. However, not being able to quickly and profitably sell the property can lead to ongoing losses. Because often, scalpers don’t keep enough cash to pay off their mortgage over a long period of time.

Real estate for rent

In the form of real estate rental, investors will have a fairly regular passive income, and over time, the rental property may increase in price. But the disadvantage of this form is that managing tenants will take more time and effort. In addition, investors also need to anticipate the situation of income reduction in the months when there are no tenants.

Authorization for rental

In this case, the investor will not directly manage the rental property, but through a company that operates the investment group. This unit will jointly manage all apartments/houses of the investment group. Therefore, investors will not lose effort in managing rental properties but still have a regular monthly income. In return, the operating company will take the management fee (percentage of the rent).

Real estate investment trust

This form of investment is suitable for investors who want exposure to a real estate portfolio without the need for a traditional real estate transaction. The trust fund will use investors’ money to invest, rent out real estate and will divide the profits earned into dividends paid to investors.