Real estate investing is a topic you hear a lot about - real estate is often looked at as a stable investment in an asset that is likely to increase in value over time. Below is an introduction to investing in real estate, and if you’re looking for professional advice and guidance in investing in real estate in Windsor and Essex County, talk to our team today.
Put simply, real estate investing includes buying and selling real estate for a profit along with renting or leasing out properties you own to generate a consistent income. Among the most popular forms of investing in real estate are:
Buying and living in a home can actually serve as a form of investing. As you pay your monthly mortgage payment, your equity in your home builds. If your home increases in value, whether through changes in the real estate market or because of improvements you’ve made to it, that also brings up its value as an investment.
Buying a house to “flip” involves purchasing a home that is in need of repairs or cosmetic improvements for below what its market value otherwise would be, fixing it up, and reselling it for a profit. When buying a house to flip, it’s important to know what type of investment you will need to make in renovations so you can better gauge if you can make a profit from it, and to know what types of repairs are most likely to improve its value. Working with a real estate professional can help you find the houses that offer the best potential to be flipped and re-sold.
Buying a property and then renting it out to tenants is a great way to generate consistent income while also building equity and benefitting from any appreciation in its value. There are great single-family and multi-family properties available in Windsor and Essex County that can serve as rentals.
If you decide to buy a rental property, there are a few things to keep in mind. First, besides your initial investment, you will be responsible for the majority of the maintenance and upkeep of it, so those costs have to be factored in. Second, it may take a long period of time to recoup your initial investment, so this option is more for those seeking a long-term return on their investment.
Like buying a residential property, buying commercial real estate to rent out to businesses is another option for real estate investing. The cost to invest in commercial real estate is typically much higher than residential, so keep that in mind if you decide to explore that market as an investment option.
Our team can also guide you through more advanced real estate investment options, including real estate investment trusts (REITs). For more information, contact us today.
To learn more about real estate investment opportunities in Windsor and Essex County, and to discuss your real estate investment goals and how we can help you find the right opportunities, contact our team today. We work with buyers interested in a wide range of real estate investing, and would love the chance to work with you on achieving your goals.