They say money is hard to find. But we live in a world ladened with money-making opportunities, one of which is an investment. There are many investment vehicles, including bonds, individual stocks, ETFs, mutual funds, cryptocurrency, and real estate. For those who are in the dark, real estate is a gold mine. If leveraged and approached with the right mindset, you can make megabucks out of this investment.
Like some investments, real estate has a few categories which you can embrace to reel in some cash. If you are new to real estate investment, the chances are that you won’t know what these options are, or your knowledge might be limited to quite a few. In light of this, we will be highlighting a few investment options you need to consider to grow your wealth and live a life of financial freedom.
1. Purchasing a rental property
One of the best and probably obvious ways to become a real estate investor is to purchase an investment property. You can decide to buy one or several, depending on your investment goals and the funds at hand.
After purchasing these investment properties, which can be residential or commercial, your next move will be to rent them out to tenants. By doing so, you earn returns which usually depend on a few factors. Nevertheless, owning rental properties is a good way to invest in real estate while scaling up your wealth.
2. Timeshare
The skyrocketing rate at which individuals embark on cross-country vacations each year has resulted in the prominence of what we call a timeshare. A timeshare is basically an arrangement in which multiple joint owners have the right to use a vacation property during an assigned period of time.
Establishing a timeshare is definitely another real estate investment you should consider. Aside from the massive returns it brings, timeshare owners are often required to pay for the timeshare maintenance, thus taking a huge financial burden off your shoulders.
While exiting a timeshare is sometimes hard, companies like the timeshare exit team boast services that help timeshare owners exercise their rights and exit their timeshares seamlessly.
3. House hacking
House hacking is another excellent real estate investment option you should consider to build wealth. This investment option is a blend of purchasing a home as the main residence and purchasing a rental property.
Generally, house hacking refers to the act of purchasing a residential property that comes with two to four units and residing in one unit while renting the others out. Money derived from house hacking can be put into paying your mortgage and expenses, thus making it a great real estate investment worth your consideration.
4. Rent all or part of your home
While this isn’t really an investment strategy, it is best we mention it here. The rise of platforms like Airbnb, HomeToGo, Agoda, Expedia, etc., has made it easier to rent your home when you are away or rent a portion of your home (could be a spare room) for a few days.
One impressive reason people embrace this strategy – and why you should embrace it also—is due to tax exemption benefits.
What do we mean?
Basically, the federal government requires you to pay taxes on all income. However, if you rent your home for less than two weeks in a year, you are exempted from paying tax on the funds generated. If you and your family are out of town for a while on vacation or a long-distance visit, you could consider renting your home out, for a short-term, of course. Doing so should generate tax-exempted cash to settle your travel expenses.
Conclusion
The real estate world is one gigantic wealth-generating investment vehicle, which can be leveraged to scale up your wealth and move towards living that life you have always dreamed of. So, why don't you figure out which real estate investment option is good for you and throw yourself in?