If you’re researching ways to increase your wealth, you’ve likely come across the real estate investing options. While in some ways this can seem like a great idea, in others, it seems like a major commitment that you may not be ready for. While investing in Waltham real estate is a big commitment, there are different types of real estate investing that may be better for your time commitment and skill sets. Real estate investing, especially in Waltham, can be a great way to build wealth when it is done correctly.
4 Ways To Invest in Real Estate
Home Ownership
When you buy a house, you are investing in real estate. Obviously there is a significant difference between owning your home and investing in other real estate property. While you aren’t actively making money or increasing your cash flow off of owning your own home, paying off your home is one of the best long-term investments you can make. Owning your home gives you more financial options – especially if you think you would like to invest in real estate.
Rental Properties
Rental properties are one of the most common forms of real estate investing. The main benefit of renting is that rental income becomes an additional revenue stream. However, renting definitely has its challenges. There are additional expenses for maintenance, repairs, and insurance for rental properties. You may also find yourself renting to families who do not pay consistently, or your property could sit temporarily vacant while you search for a new renter.
House Flipping
Flipping has become another popular form of Waltham real estate investing, in part due to television shows that focus on the subject. Flipping a house means purchasing it, making some improvements and other updates, and then selling the house within a short amount of time.
The key to flipping is to purchase at a low price point. Unless you get a good deal at the beginning, you can’t expect to make much money. However, just like any investment, there is a risk you won’t make money or could even lose money. It also takes a lot of time and effort, so those are certainly some factors to consider before jumping in. You would also want to check in with a real estate agent about whether house flipping in the Waltham real estate market you are considering is worth your time and effort.
REITs
A less conventional way of investing in real estate is through a real estate investment trust (REIT). These are companies that own real estate investments and sell shares to investors who would receive a percentage of the income made off of the investment. However, this is a risky investment type. If hands-off investing is more appealing to you, consider mutual funds instead.
If you do plan on researching more information on either renting or flipping homes in your area, reach out to a Waltham Realtor. They can help advise you on how properties are moving in the area based on their expertise with Waltham real estate. Real estate investment can be an excellent way to add a revenue stream to your income.