Making Money from Real Estate

The biggest investment of anyone is usually in owning their own real estate. Real Estate will always be expensive. I watched a YouTube British documentary which shows life in Britain during the 1960s. The YouTube channel name is “British Pate”. It shows that even during those early times the government of the UK is already trying to address the house affordability crisis by constructing cheap experimental homes.

Fast forward to 2019 and we see that many long time residents of the UK are being forced to flee London real estates for much cheaper real estates outside of it. This just shows the ever increasing price of real estate in UK especially London as time passes by.

Another example however shows a different story. Las Vegas is known for very expensive real estate but when the economic crisis of 2008 happened many real estate were either abandoned or sold at dirt cheap prices. This shows you that real estate does not always go up as many real estate agents would have you believe.

Real Estate however is so scarce in some areas especially in highly urbanised areas where all the infrastructure are that they are almost a no nonsense investment. My mother for example bought a cheap real estate being sold by a desperate seller.

After just a few weeks we already got an offer from a real estate investor who is willing to pay several times the amount my mother originally paid. This is how profitable real estate investing can be that is why we see many people becoming millionaires or even billionaires by speculating in real estate.

You do not have to buy actual real estate to become a real estate investor. You can invest in REITs or Real Estate Investment Trusts. They are companies that own and even operate income producing real estate properties. According to most sellers of REITs the income you will get will be assured since they are backed by physical real estate assets.

If however you do a thorough research about REITs you will discover that just like any other forms of investments there is also a risk of you losing your investments.

If you do own or are still paying down your real estate you can make money with it. You can rent out part of your real estate like a parcel of land, a separate structure, a room and even your car park in your real estate. You can rent these out as dwellings or as storage areas for a fee.

In fact real estate rental can be so expensive and profitable in some places that people just live anywhere there is a space. In Australia for example I have seen people sleeping in living rooms, garages, verandas and kitchens and they are all packed together in 1 apartment.

You can also buy funeral plots as real estate investments. In the Philippines for example you can buy funeral plots sans the funeral service. The entry level for this kind of real estate investment is much lower than residential real estate. There is a shortage of funeral plots in many parts of the world and this could be a good investment for a beginner real estate investor.

Agriculture land can also be a good real estate investment. There are many people who actually specialise in investing in agricultural land. In Africa for example there are many people both Africans and foreigners who speculate in agricultural land. This is due to the rapid urbanisation of Africa and the need for more food to be produced.

Going back to houses we can also rent them out as some sort of hotel room. We all know about Air BnB. Take note that there are some property owners who con potential renters by posting pictures of much better homes than what they are actually offering. There are also renters who abuse the home owners or damage and steal their property. Beware.

You can also offer your real estate as a production set for a movie or a show. Location scouts usually scan areas for movie set locations. You can contact location scouts if you want or post them in websites that list out homes for rent as production sets.

Lastly, you can rent out your real estate for events such as weddings, parties, … etc., especially if you have a big and beautiful property. Just take note that the renters stay within the vicinity of the area you are renting out and also that they do not cause damage to your property.

Conclusion

Many people think that investing in real estate is safe and very profitable and this is mostly correct as real estate almost always increase in value and rarely goes down. This is mostly true as since the beginning of time acquiring real estate is one of the biggest investments most people do and most of the time there are many people who cannot even afford to buy real estate in their lifetime.

You should however not narrow your focus on residential real estate as there are other profitable real estate investments such as agricultural, cemetery, parking and others that could also be profitable to you. You also can rent out your existing real estate or parts of it to also earn money.