MAKE MONEY INVESTING IN REAL ESTATE
Housing market has been witnessing a favourable growth since more than 20 decades ago. In fact, in some pockets of the country, housing prices rose well over 10 percent on average.
But, it’s not only the big coastal cities that are seeing huge growth. A recent survey from GoBankingRates revealed that many cities with the most growth were inland, including: Buffalo, New York (34.6%), Atlanta, Georgia (24.54%), and Cincinnati, Ohio (20.6%).
With this in mind, you may be wondering if you should throw your hat in the ring and invest in REAL ESTATE – or, if you’re too late. You may also be wondering if you should invest in real estate in a traditional sense — as in, becoming a landlord.
The truth remains that it’s not only been a good time to invest in real estate but great opportunity since more growth is likely on its way, but there are also more ways than ever to invest in housing without dealing with tenants or the other minutiae of landlord work.
Two Better Ways to invest in the Housing Market
- Invest in a real estate focused company
There are many companies that own and manage real estate without operating as a REIT. The difference is, you’ll have to dig to find them and they may pay a lower dividend than a REIT.
Companies that are real estate-focused can include hotels, resort operators, timeshare companies, and commercial real estate developers, for example. Make sure to conduct due diligence before you buy stock in individual companies, but this option can be a good one if you want exposure to a specific type of real estate investment and have time to research historical data, company history, and other details.
2: Home construction investment
If you look at real estate market growth over the last decade or longer, it’s easy to see that much of it is the result of limited housing inventory. For this reason, many predict that construction of new homes will continue to boom over the next few decades or more.
In that sense, it’s easy to see why investing in the construction side of the industry could also be smart. An entire industry of homebuilders will need to develop new neighborhoods and rehabilitate old ones, after all, so now may be a good time to buy in.
Large homebuilders to watch include LGI Homes (LGIH), Lennar (LEN), D.R. Horton (DHI), and Pulte Homes (PHM), but there are plenty of others to discover on your own (forbes website, 2018).