How Much Do You Need To Invest In Real Estate ?
With the rate at which people are dumping stocks and shares for hard asset investment due to the unstable nature of the market, the question of how much does one need to invest in the real estate markets keep coming up.
How can one quantify the amount of money you can invest in real estate, it is not easy to peg a particular figure to this question. Since the question begs for some insights, we are going to try to give hindsight of how much you might need to start in the real estate business.
It will surely require a huge amount of money to be comfortable in the real estate business and plan on making any profit. In helping to determine this, we are going to discuss the various ways you can invest in real estate and the range of amount you will need.
Investing in Shares in Company
You do not necessarily have to buy a physical property to invest in the real estate market. There are companies which are involved in real estate, and you can buy shares and become part owner of the company.
With a company which you can obtain their shares in the open market, the price of buying their shares and investing in real estate business is flexible. You can invest at about 30% of your savings in real estate company shares as you watch your investment grow.
Part Ownership of Properties
If you do not have the money to acquire land or landed properties on your own, you can partner with another person to jointly own property. This had been made easier with companies that offer you the opportunity to be part owners of properties. They help in developing the properties and put it up selling units of the properties out.
This makes it easier for medium class workers to own properties and invest in the real estate market. You can invest and own as much as 50% in such investment. It offers you the opportunity to make money and enjoy quick returns for real estate investment.
You can become a landowner and become a landlord when you buy land and develop the properties. This will require a substantial amount of money, and you will be in total control of your properties. The amount in developing properties can vary depending on the size of the project.
The more money you invest, the massive the project and higher the returns. There is some real estate investment that the investor does not expect to make a profit in the next five years.
The amount involved in running such a massive project may require as much as Rs.1000000 and above. This type of investment is carried out by real estate investors with long-term plans owing 100% of the investment.
As you can see, you cannot peg an actual amount you will need to invest in the real estate business. However, you can always find a way to invest in the real estate industry by looking up where your cash ability can fit in the classes of investment mentioned above.