Real Estate: How To Invest In Them

Surely you have heard of real estate, real estate or, perhaps the English term, real estate . It is the concept with which any physical property related to land or soil is designated.

What is real estate

When we talk about real estate we always refer to goods related to the ground or land. They are also called real estate because they cannot precisely be moved.

Types of real estate

  • Residential assets : these are houses, apartments, farms, condos … that are used to live.
  • Commercial assets : in this case, offices, apartments, premises … that have a commercial or business purpose are included. The location and distribution of these properties are designed to fulfill this commercial function.
  • Industrial goods : these are factories, mines, farms … and, ultimately, all those large spaces – both in space, employees and structures – destined for economic activity.
  • Personal property : or personal investment refers to intangible assets, such as bonds or stocks, which also includes tangible assets such as furniture, clothing, electronics …
  • Real property : where the real estate —or real estate— is located. This concept encompasses real estate and the rights over it, including the possibility for the owner to use his property as he wishes. In other words, real estate is only physical objects, but Real property includes the rights over those objects — rights of possession, enjoyment, control, exclusion and disposition.

How to invest in real estate?

This time we are going to explain 5 ways to invest in real estate , far beyond buying a property.

  1. Buying new construction off-plan : perhaps it is the first option that comes to mind when it comes to investing in real estate. The new promotions are a great bet. New construction pays more and more attention to quality, materials, self-sufficiency and good use of space. It is always a good option if you want to invest some good savings.
  2. Buying second-hand homes to rent : it is another option. Many investors buy houses at very competitive prices, fix them and rent to pay off the investment. It also applies to commercial premises or office buildings.
  3. Investing in real estate through SOCIMIs : If you don’t want to invest a large amount of capital, investing in a SOCIMI may be a good idea. They are a stock exchange alternative to invest in brick. In general, these publicly traded investment companies in the real estate market are dedicated to the rental of all types of properties.
  4. Investing in communities of online real estate investors : it is about investing through an online intermediary specialized in real estate investment. It is a good way to participate in the returns offered by rentals from very small amounts of money. The key to these online companies is diversification.
  5. Investing with real estate investment funds : this is a way of investing in real estate indirectly, also with small amounts. The idea is to participate in a basket of real estate assets chosen by a manager.

As we have seen, the real estate is a good investment opportunity . Far from what it may seem, with the different formulas on the market, you can invest in real estate with little money; although if you have a large equity you can also invest in new construction. In any case, seek the advice of an expert who can help you based on your particular situation.