How Does Investing in Real Estate Work? (What are the Different Ways to Invest?)

The process of buying real estate is more than simply buying a place that you can call home. Some people use real estate as an opportunity to create value and real estate investment is still a very popular way to invest for the future or retirement.

Although buying real estate creates the opportunity to make a profit, doing so can be a lot more complicated than investing in bonds and shares. Let’s take a look at some of the basic ways to invest in real estate:

Becoming a Landlord

Becoming a landlord is ideal if you are good at renovating property and you have no trouble dealing with tenants. You will need a lot of capital to get started and maintain all of the costs associated with a vacant property. Many people use a property management company to help them deal with a tenant, whereas others are happy to run the risk of receiving a call any time of the day or night. Property can increase in value over a number of years, earning the landlord a nice income.

Investment Groups

Using investment groups is ideal if you would like to have real estate but without the worry of running it. You will need money to invest to begin with, but using an investment group can provide you with income and an increase in property value. You should be aware that a real estate investment group can eat into your returns, however, using one can be perfect if you do not want to become a landlord.

Flipping/Real Estate Trading

Flipping/ Real estate trading is ideal if you have a lot of experience in the real estate world and marketing. Trading can be quicker than investing as the capital is unlikely to be tied up for very long. There can even be a few returns during this time too. However, you will need luck and experience with real estate trading as markets can cool very quickly and leave you with a loss.

Investment trusts

Investment trusts are ideal for those who want exposure to the real estate world without going through a transaction. The stocks can pay dividends and long-term cash is very much the norm. An investment trust involves using investors money to purchase properties. Bought and sold, the trusts are like many other stocks and can give you an income without the need for you to buy a property.

There are many different ways to invest in real estate, and they can all affect how ‘Hands on’ you are with tenants and how much money you make in the long-run.

About Us

Slater Forbes are one of the leading property investment companies specialising in off-plan property

20 Years Experience

Please note that Slater Forbes Investments is not authorised or regulated by the Financial Conduct Authority and is not permitted to offer financial or investment advice to UK resident investors, whether or not the intended investments are regulated or unregulated. We strongly encourage all prospective purchasers to consult an FCA-authorised Independent Financial Adviser before committing to any form of investment. This is not an offer to participate in a collective investment scheme as defined in section 235 of the Financial Services and Markets Act (2000) and Investors will not have access to the Financial Services Compensation Scheme or the Financial Ombudsman Service. This website, videos and documents referred are intended to provide general information concerning the proposed development, construction and the management of ”The Development’. The information provided has been prepared in good faith and to give a fair overall view of the Development. Photographs and electronically generated images, furnishings and accessories featured are for illustrative purposes only. All information provided by us at our web site or otherwise is provided on an illustrative basis. This email is for the sole use of potential business partners and/or prospective purchasers. We recommend that all appropriate commercial, tax and legal enquiries and advice is taken before entering into a legally binding contract to purchase a property forming a part of the development. All investments attract a degree of risk and Slater Forbes encourage all clients to undertake their own due diligence. Property prices can fluctuate and the value of your investment may go down as well as up. Prices and financial illustrations are provided as guidance and are examples of the possible discounts, yields and returns that investors could achieve. Copyright in and to this website and documents and videos referred belong to Slater Forbes, which is a trading name of Green Key Sales and Lettings Ltd, which is a UK registered company no 10037602.