Best Real Estate Investing Ideas 2023
We look at real estate as a way of expanding one’s existing portfolio. Investing in this sector helps you build up a passive source of income. With the uncertainty of an upcoming recession looming over us, there is doubt about whether the timing is opportune. This sector, however, has always succeeded to serve as a hedge against the ever-increasing rates of inflation. Plush holiday homes and opulent commercial properties are the physical real estate classes that are most popular and well-exploited. This article talks about lesser-known alternatives, and 2023 might be the perfect time for you to start. Markets across the world are gradually recovering from the pandemic, most of which are growing with an uptrend for months.
The most well-known of all real investments are the properties meant for families to reside in. There is a growing demand in urban areas, where there is a constant inflow of tenants looking to rent places temporarily. The need for no-shared spaces, privacy, and proximity to good schools and developed towns will ensure that this sector will only continue to grow. As the costs of purchasing property increase, homeowners are now leaning towards renting homes. Research shows that the current generation has a substantially lower home buying rate than the previous ones, where owning your own house was looked at as ‘financial security’. Vacation rentals or holiday homes are lucrative too. You can invest in a location that is a ‘tourist hotspot’ or a holiday destination and list your property on apps and sites that promote tourism. Renting out for a few days brings in more income than if you had to rent out the place for a month. With people looking to escape the busy city life, holiday homes with a sea view, beachfront, or an open-garden space could be the ideal buy.
Health Care Facilities
We’ve seen the importance of medical care facilities as countries grappled with the pandemic. MOBs or Medical Office Buildings are now valued as investments, just as much as grocery stores and supermarkets. This sector has recently skyrocketed and will continue to grow in value. You can attract investors who are interested in long-term leases. Some examples include— physicians’ offices, testing laboratories, 24-hour pharmacies, hospital complexes, etc.
Known better as REITS or ‘Real Estate Investment Trusts’, this method of investing is for you if you want a more hands-off approach. Opt for it if you want to invest in real estate without having to deal with the complexities that come with managing it. REITs own various properties in the form of apartments, retail spaces, malls, and residential homes. You buy shares of a REIT, thereby helping them use your funds to manage the property. In turn, the income generated is returned to you in the form of dividends. Being high-yielding and safe makes REITs an attractive option today, especially as a post-retirement source of income.
Tokenized Real Estate Investing
This is a method of real estate investing that doesn’t need you to own equity in a property. A stable internet connection and the right platform and strategy are all that it entails. Instead of owning shares in the property, you mint tokens on a blockchain. In this way, you digitize your investment and have complete transparency as a result. Blockchain makes a high-investment sector like real estate more affordable to people. With a smaller minimum amount to invest, it is accessible to those who have been shut out of the market due to competitive costs. This is not a traditional method, no doubt, but it has benefits when compared to the latter. Once you choose the right platform, you receive regular payments and a token with the valuation of the property, which you could use to trade. You stand to gain from price increases without owning physical property. The edge that you have here, over other forms of real estate investing, is liquidity. With technology being involved, you can buy and/or sell almost instantly. Selling real estate was always a pain point for investors, for which tokenization is now the solution. The deals are automated and eliminate the need for human intervention. You can be assured that there are no unfair practices or unrequited paperwork.
Other investment strategies include house-flipping (buy-renovate-sell), house-hacking (buy, live in and rent out other parts of the home), hotel-chains and buying land. It all boils down to understanding your investment goals and deciding what works best for you.