Owning a real estate can be a smart way to diversify your investment portfolio and generate steady income. And this could be achieved through the following:
Buy a house or estate property and sell it within the shortest possible time. In these cases, some flippers do repairs and add little touches so to enhance building quality. This business is unlike buying and holding residence where you wait till the market value is right before you sell; It’s a remarkably short period of business investment.
Buy and hold primary residence:
The second way of achieving diversified business investment in the built industry is by buying and holding residence in direct opposite of house flipping where you acquire a piece of real estate, do all the necessary renovation and repairs and hold it for as long as you can for the market value to appreciate before selling it. The difference between this and the afore described investment portfolio is the time span. While House Flipping is short time framed, the latter is long time framed. And the similarity is the necessary renovations.
If you seek to establish a recurring rental income, multi family investing is another fantastic way to boost your income. According to fortunebuilders a multi family is a type of residential housing with two or more units under one roof or several buildings within one complex. Examples include duplex, townhouses and condominiums. Each unit tends to have its own living space, separate kitchen and bathroom. Generally consists of owning a property and land under one recorded deed. This can be owned by one or more parties. Bigger cash flow, more control over value, large pool of tenants and scalability are the advantages of multifamily properties. It requires a considerable amount of time, cash and effort to get started. Multifamily turns to benefit from economy of scale.
Long term rentals (get tenants in your home):
According to mashvisor, it is usually rented out to tenants for a long period of time, typically more than a half a year. In order words, long term rentals are associated with providing tenants with accommodation for an extended period of time. Consequently a long term rental is a traditional real estate rental where the landlord receives a constant flow of rental income from his/her tenants. It may not come furnished.
Single family real estate:
It’s a free standing residential dwelling built on a single plot with no shared walls. One unit not attached with any type of structure. It’s built generally with a front and back yard as well as garage. For beginner investors these investment properties offer an assortment of advantages compared to multifamily real estate. Advantages: it’s more affordable, higher appreciation more than any type of investment, easier to finance, easier to manage
Short Term Rentals:
It’s most often a furnished home you lease for a short period of time. A short term rental period is usually less than six months. Tenants usually mean one night or a few weeks. As a short rental, the landlord needs to find tenants more often than long term rentals. While family oriented real estate markets are suitable for long term rentals, places popular as business trip locations and tourists’ destinations have higher occupancy rates for short stays or short term rentals.
All could provide a relatively steady income depending on where it is located; meanwhile AirBnB makes it much easier to do short stays. The con of short rentals is that the occupancy rate is uncertain and may come seasonally. Generally the location determines the occupancy rate for each rental choices, business centers like airport residential area or ministries or tourist centers around the Kakum National park may or Kwahu have high occupancy rate for short term rentals
Visit floatghana.com/real-estate-ideas-diversifying-investments/ to read further on other portfolios of real estate ideas you can explore before and after the corona crisis, to diversify your income.
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