Passive income and financial freedom are two main benefits of investing in real estate. However, investing in apartments and commercial buildings has a set of risks as well. The trick is to invest in properties that go up in value over time.
Kolforn (Wikimedia), 12-09-2017 Century 21 real estate, Albufeira, CC BY-SA 4.0
What is real estate investing?
Real estate investing is investing in a single-family home, an apartment building, or a commercial building in order to collect monthly rents; you can also sell the property when it goes high up in value. There are numerous property developers in Sri Lanka, for instance, whom you can get in touch with for more information; an example of this is John Keells Properties – but you should always do your own research.
REITs
If you are new to investing in real estate, you should consider going for a REIT. These are companies that own real estate, and they let you invest in a portion of their properties. REITs allow you to have passive income without having to worry about property maintenance.
Residential properties
You can invest in an apartment or single-family home with a loan from a bank. You can rent the property to another party and use the rental income to pay off the loan. You can also, at a later date, sell the property.
Commercial properties
The concept of investing in commercial properties is the same as residential properties. You can rent out the property and collect rental income, or sell the property when the value increases.
