Real estate markets are known to be ever evolving. An investment strategy that was once suitable can become obsolete in a short time period. With the uncertainty created amidst the pandemic, real estate investors have been forced to reevaluate to what extent their current strategies can be modified.
Although 2020 has been quite a challenging year for real estate, there are still plenty of opportunities in real estate and newly renovated homes listings for this year. Below are the seven best real estate strategies for 2021.
1. Buy-And-Hold Real Estate
The “buy-and-hold” strategy is when the investor purchases the property and holds it for a specific time period. The key is to wait for the property’s price to appreciate and then sell it on a higher price or use it for investment.
For this strategy to be successful, however, investors need to identify the right market area which brings in promising property appreciation and investment.
2. Online Real Estate Investment Platforms
Also known as real estate crowdfunding, it is where platforms such as Centuria, VentureCrowd and Brickraise provide investors and real estate professionals to connect and get the exposure to real estate with portfolio diversification and competitive returns.
3. House Hacking
House Hacking is basically through which an investor can earn by simply renting out their place of residence. It could be in the form of renting unit wise or floor wise.
The key advantage to this form of strategy is the rent can be used to pay off various payments associated with the property, such as mortgage payments.
4. Real Estate Mutual Funds (REMF)
REMFs are a mutual fund that helps in investment in securities of real estate firms through simply purchasing shares on the stock market. This particular strategy is favorable to small investors who be rewarded with good returns and exposure to the market.
5. House Flipping
This term is famously used by investors who purchase houses and then sell the same house, sometimes post renovation, at a greater price. Even though this strategy is one of the most suitable for 2021, it comes with certain risks to keep in mind such as having the right skills and competence for this strategy to be successful.
6. Airbnb Rental Properties
Although 2020 has not been a good year for Airbnb rentals, 2021 has shown considerable recovery and is a good strategy to start with for beginners in this sector. Purchasing an Airbnb property in the right place could be a favorable investment since there is quick cash flow as well.
7. Traditional Rental Properties
This simplest strategy involves purchasing properties and then giving them on rent for a long period of time. The main advantage to this is getting fixed rent monthly and a steady amount of cash flow.
With many strategies available in the market, 10 Properties provides expert advice and guide you through your property investment journey, you can also get details about new homes for sale in Melbourne. For further queries, please reach out at [email protected] or call 1300-617-677.
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