Investing in real estate can be a good strategy; it’s a lucrative investment but at times requires guidance. We now take your through different ways on how and where to invest in real estate
Home renting: This is where you build or own a house where you don’t need to use all those rooms. So, you can rent your property easily while living in it.
You need to be careful about your location and the people whom you are renting to your house. So, it’s quite an easy way to earn some cash while living in your home.
Flipping property: Flipping property means you purchase a house, update and repair it, and then you sell it for more than the amount spent on purchasing and updating it. To be successful in this kind of real estate you should know that you need time, money, and energy. You need to have money to buy the property and time to renovate it. It’s recommended that you choose a trusted contractor before flipping property otherwise repairing and updating may make the property more expensive than the amount you can sell it for. The location of your property is also important.
Rentals; Here you can buy land, build rentals or buy a property and rent it to a trusted person. Rentals provide steady income flow but also require some effort like repairs and maintenance. You can hire a property manager to manage your rentals.
House hacking: House hacking is when you live in one of the multiple units of your investment property as your primary residence, and have the rest of the units rented out. House hacking is another lucrative way to make good money in real estate. Here you can build or buy a house, live in one unit and rent other units from your property. This will help you in getting monthly cash from rent, and you can easily bear your expenses.
Home owning: You can choose to build and live in comfort in your own home. Home owning is a real estate investment that many people tried to achieve. Investing in home owning protects you against real estate market instability.
Where to invest in real estate
Commercial real estate: When you want to invest in commercial real estate, the first point you have to look at is to make sure that your investment is a business area. This includes shopping centers, office spaces, hotels, malls and medical facilities. But also in residential areas where people may need services near them.
Land banking is a real estate investment strategy that involves buying large tracts of undeveloped land to sell at a higher price after development. It involves buying vacant land ahead of development and selling it later. For instance you can buy land at the outskirts of a growing town and sell it as development moves to this area.
Subdivision is where a large piece of land is divided into smaller manageable plots/acres and sold to different people. These can be plots of 50 by 100 ft. or 100 by 100 or an acre depending on location, and land use in the areas. In this kind of investment, the availability of utilities like water, electricity and roads is key.
Residential: Investing in residential involves having houses for selling or renting or constructing several rooms for renting. They can be apartments, complete houses, rooms and apartments. When you are investing in residential you have to be mindful of your potential clients for example near a university, should have double, single rooms or apartments. The income of your target population also matters.
Plots/land assembling: This is where you identify a potential area for investment then buy plots of land one by one and then add them later for a big sale or investment.
Vacant land: Many people both in rural and urban are involved in the sale of land. You can invest in vacant land, sell it to developers. When thinking of investing in this land, location is very key.
Industrial: These consist of large-scale properties used for storage, warehousing, manufacturing or distribution. The development trend of urban areas like Mbarara city goes with growth of industries and these require housing their products in real estate that facilitates easy distribution. These facilities will need to be close to population centers with easy access to major highways. They will need to be in neighborhoods that can tolerate a lot of truck traffic and with a workforce available for warehouse and fulfillment operations.