Of all investment offerings, real estate is the most stable and one of the most attractive. That has been the case for as long as anyone can remember. The industry generates relatively good profits year after the other, making it the ideal investment option for the aging population.
On top of offering an exponential cash flow and appreciating predictably in value, real estate also offers equity growth through debt reduction. This positive leverage helps investors keep up with inflation and worry about fewer investment risks.
Investment experts predict that the real estate industry will continue earning investors higher returns going into 2020. Next year will see most real estate equity firms, Zamir Equities being among them, realize full growth potential. The following 5 real estate opportunities will also crop up for entrepreneurs to leverage this year.
1. Property mutual funds
As an entrepreneur, you need an investment option that allows you to limit your level of risk and at the same time minimize your involvement in active management. Real estate mutual funds give you that and more.
This investment method involves real estate companies using stocks and other specified securities to purchase property on behalf of investors. These funds are on the uptake and are expected to take shape in the coming year, particularly due to increased residential and commercial vacancy rates.
The risk involved in investing through real estate mutual funds is significantly lower than when you buy and manage property individually. And like most mutual funds, these funds are extremely liquid so you can always cash in on them any day. That is new to the real estate world.
2. Investment trust
Here, investors come together, combine funds, and jointly invest in trust. The real estate investment trust (REITs) have seen exponential growth in the last couple of years, with real estate futurists predicting that they will become even more profitable going into 2020.
When investors acquire property through a REIT, they become beneficiaries of the investment trust and become eligible for a share of any annual profits that the property makes. The profits can be generated from either selling or renting out the mutually-owned property.
Going into 2020, investors will have many REIT investment opportunities, including investing in shopping malls, hotels, warehouses, and office buildings. Every real estate equity firm out there must be keen on investing in this under-invested area.
3. Real estate notes
Someone wants to buy property, say, a home, but he/she doesn’t have the capital. In that case, you step in and provide loan financing for that person, with an agreement that he/she will be paying you on the loan. Real estate notes are the documents that authenticate that transaction and guarantee that the borrower will be paying the financer the amount and at the intervals agreed upon by both parties.
Real estate notes have been growing in popularity over the last decade and are promising to keep gaining going into the next decade. These notes can be sold in the real estate market at a profit. The idea here, therefore, is to cash in on the notes when the market suits you.
4. Real estate-focused companies
2019 witnessed impressive growth in real estate focused companies. There are now thousands of real estate startups in the world, cumulatively managing hundreds of billions of dollars’ worth of property.
Technological advancements such as the growth of AI and machine learning have helped real estate startup companies to grow exponentially within very short durations. You can easily make huge profits by searching for a promising real estate company and investing heavily in it.
5. Short-term rentals
Renting out property is one of the best long-term projects any investor can make. Rentals make money consistently and steadily over the years while all along preserving the initial value of the property, if not raising it. All you need to do when you eventually decide to sell a rental property after years of use is to remodel or renovate the outdated or damaged areas.
Traditionally, landlords believed in renting out their properties to people who were planning to stay in the property for a long time. But this model is quickly being overtaken by short-term rentals, especially in areas that welcome a huge number of visitors around the year.
Vacation rentals in Florida, for example, are becoming more and more fashionable due to the fact that tourists prefer to stay in them than to spend tons of money staying in upscale hotels. If you own property in Florida or any other popular tourist destination, you will make more money in 2020 by renting out your property to short-term visiting tenants than to long-term local tenants.
Real estate investment is still a splendid investment offering. Always has been, always will be. And because of its guaranteed stability and profitability, every serious investor must look for ways to leverage this industry and grab every opportunity it presents. Good luck as you consider your options in 2020 and throughout the next decade.
Sophie Jones is enthusiastic about everything related to business and investing. A financial analyst and instructor, she enjoys using what she’s learned from 10 years of studying business and money to help others achieve financial stability.