How to invest in real estate?

For the last 6 months, I have been thinking about putting some of my savings into Indian real estate. But I have no idea how to invest in a real estate. After conducting extensive research, visiting various locations, and speaking with my friend, an experienced investor, I discovered the proper strategy. I have shared those below.

How can I Invest in Real Estate?

1. Choose if you want long-term or short-term benefits. Profits from real estate investments usually take time to make profits. 

2. Consult a financial counselor who can evaluate your financial situation and assist you in building your portfolio. 

3. Choose between investing in real estate or looking into other options like bank auction, real estate mutual bonds, fractional ownership, or REITs. 

4. Whether it's a one-time payment or recurring installments, set the investment period. 

5. Maintain a log of your investments and track the profits over time. 

Don’t forget to determine the profitability of the investment by comparing the returns to the time required to achieve them. 

Vashali Bansal has already mentioned where can you invest without buying a property. So I am not mentioning it again. I am planning to invest in Real Estate Investment Trust.

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Hello Jaina, I can help you with how can I invest in real estate with little money. I was looking to invest in real estate a few years ago and took the help of a friend who was already in the industry and thriving. He suggested some ways which helped me get started. So, I’ll share the most effective one, in my opinion, with you here.

How to Invest in Real Estate with Less Money?

You can go for real estate crowdfunding. In this, capital is raised for real estate by getting in touch with a group of investors and requesting them to pitch in a modest amount of funds to a project. 

To put it more simply, this is a process of raising capital that gives opportunities for real estate investors to participate in projects.To receive money for launching a project, the borrower registers with a platform. The investor or lender makes investments on the platform in exchange for a high return rate. 

This method helps you invest in real estate with less money. So, you can go for this to begin investing. This is all from my side regarding how to buy property with less money.

Real estate investment is one of the best investment options. People buy properties which can be put up for rent. Buying a property and then selling it after a certain period to receive a good return on investment. In the past few years, queries related to real estate investments have gone up. Many people ask how to invest in real estate in India. I am sharing a few tips with you here on the same.

• Purchase property on mortgage

You shouldn't stop yourself from investing in real estate due to a lack of money. You can invest in a property by availing loan from the bank, at this present stage the bank provides 70% of loan at the time property purchase that reduces the financial burden from the investor.

• Real Estate Investment Trust (REIT)

At the early stage in the Real estate market, you should invest in a Real Estate Investment Trust. This is like mutual funds in which a person enjoys the benefits of the stock exchange with less money. It is a low-cost investment you do not have to invest a high amount of money. You can enjoy tax exemptions with REIT. As an individual, you can save up to 90% of tax every year.

• Real estate wholesaling

In this process, the wholesaler comes in contact with the seller and finds a party interested in buying the property. The wholesaler earns money in the form of a fee charged from the buyer. Wholesaling is a short-term goal made by the investor to achieve a good amount of money. Real estate wholesaling is considered a smart move for beginners in the real estate market without investing a huge amount.

• Bank auction property

When the owner of the property fails to pay the bank EMI on the given tenure then banks have the right to sell that property and compensate their money given to the borrower or the property owner and banks usually  host an auction for selling the property.  The auction properties are mostly sold at lower price then the market value of the property. So you can try out your luck for investing in a property at low budget by attending a bank auction.

• Invest in rental properties

If you buy a property on EMI and put it on rent this can be a great investment without much effect on your pocket as you can pay your monthly EMIs from the money received as rent from your tenant.  

This is all about how to invest in real estate in India with little money