What does real estate investment mean?
When we talk about real estate investment we are referring to an activity through which you use your capital to buy a property to make a profit, by reselling or renting it. Or it refers to any private individual who invests in real estate by making its capital available to support real estate operations of other companies, obtaining a profit.
You can invest in real estate as natural persons (mlspin – christian hayes danvers) or through specific real estate investment companies. When you are a beginner, it is advisable to start investing in real estate as natural persons and, as the activity becomes continuous and you have mastered the management of a real estate investment, it is preferable to open a real estate investment company.
On the subject, the common belief has spread over the years that real estate investments are exclusively reserved for people with high assets and therefore large capitals that they can make available. However, this belief is not entirely true, since today it is possible to invest in real estate for little money.
This is news that will most likely interest small saverswho can finally count on new tools to make their savings more profitable.
There are many tools that allow you to invest in real estate with little money: mutual funds in the real estate sector, real estate ETFs, stock market shares of companies operating in the real estate sector and real estate crowdfunding .
Among the instruments mentioned, real estate crowdfunding is a particular form of real estate investment , which is worth inquiring about. This tool, which has revolutionized the field of real estate investments , consists of fundraising that takes place on specific authorized web platforms in support of variousreal estate transactions.
The peculiarity of real estate crowdfunding is precisely that it is a tool available to everyone, without distinction: thanks to the new web platforms, investing in properties with little capital has become a reality you can rely on if you are looking for convenient real estate investments .
In fact, you can invest in real estate starting from a few hundred euros (example: €500) and obtain interesting earnings, freely choosing the real estate transaction you prefer.
High yield real estate investments: what are they?
The real estate investmentit is spreading a lot among small savers, especially the Italian ones who have long been linked to bricks and mortar and its earning opportunities.
In particular, what interests small savers the most are high-yield real estate investments , but before getting into the heart of the matter, let’s dispel a myth: becoming an expert in real estate investments overnight is impossible.
However, as we have already told you previously, real estate crowdfunding can be an excellent tool for small savers. This particular category of high-yield real estate investments is divided into equity crowdfunding and lending crowdfunding.
In the case of equity, the investor invests the capital in the chosen real estate transaction, becoming a partner in the project. In the case of lending crowdfunding, the lender makes its capital available for the real estate transaction, obtaining the lent capital plus interest upon completion of the transaction.
With real estate crowdfunding, investing in real estate has become very profitable. Collection takes place at the conclusion of the transaction which lasts 12, 24 or 36 years with average interest rates of approximately 8% and 10% on an annual basis and in the event that the proposing company is unable to conclude the transaction the capitals are returned to the participants.
The chances of this happening exist, even if they are minimal, given the current positive trend in the sector. For these reasons and real estate crowdfunding is confirmed as one of the most reliable high-yield real estate investments .
Is investing in real estate worth it?
Before starting to explain how and why investing in real estate is convenient, let’s start with a simple question: what is the main object of real estate investment ? The answer is obviously: the house.
The house, as we all know, is real estatethat will always have great value for people: there will always be people who need a roof to live under, even in times of crisis. Whether it’s a two-room or three-room apartment, an apartment or a villa, a home is essential to people’s lives.
Here is one of the main reasons why real estate investments are beneficial for investors, even in times of economic crisis.
But not only. It is also worth investing in real estate for an elementary reason, of which we are all aware. The brick is a tangible property , clearly concrete, which is not lost over time and subject to less volatility than a share associated with a more “abstract” concept.