Hello World! Welcome Friends! Despite climbing prices in most North American markets, experts still maintain that real estate investment is one of the most risk-free ways to earn money. As many point out, real estate is a perennially marketable commodity with a near-unbroken history of value growth and the potential for several diverse revenue opportunities.
In other words: if you’re interested in owning a real estate investment property, and have the means to do so, contacting Estate Agents in Deptford will be an investment that will pay off.
How much it pays off is another matter. To maximize the money-making potential of your investment property, it pays to know the different ways a real estate investment property makes its cash. In this post, let’s explore four ways – some of which you may know already, and others that might surprise you.
Appreciation
Let’s start with the obvious. Appreciation is the most well-known and perhaps most significant way a real estate investment property makes money.
While you own a property, several factors will (likely) coalesce to increase its value: the desirability of the location, nearby developments, and the improvements you make on the property. It’s worth noting, however, that the only way to capitalize on appreciation is by selling your investment.
Rent and Rentals
Rent and rentals are another obvious way your real estate investment can make money. Unlike appreciation, money from rent and rentals is a consistent revenue stream – rather than a one-time windfall.
You can rent your space out for residential or commercial use; the property’s use will depend largely on the building itself and the location. Rentals (like Airbnb units, etc.) are also becoming a popular revenue stream for real estate owners.The six-year rule defines the property as a rental for tax purposes. By using this rule, you can rent out your property and still avoid capital gains tax when you sell it. This means you can hold onto the property indefinitely – or at least until it’s financially beneficial to sell. As the folks from nyproperties.au note, this can be especially helpful if you need to relocate for work or other reasons but plan to return to the property later. Plus, you can still enjoy the tax benefits of owning a rental property.
Parking
Beyond rent and appreciation, there are several creative, alternative ways to make money from a property. One way is to partner with a parking management company to revamp your parking lot for public use.
A good parking management company will leverage modern technology to increase your parking real estate’s net operating income. This is a passive form of real estate income, as the parking management company will take care of all daily operational aspects of the parking facility.
Multi-Use Parking Lot Applications
The concept of a multi-use parking lot is relatively new, devised by REEF in part to address the abundance of underused parking lots. The company transforms urban real estate like parking facilities into multi-use hubs that include micro-fulfillment centers, REEF Kitchens and micro-healthcare clinics.
By enrolling your property in the REEF network, you license a portion of your unused space to activate passive income. It’s a shrewd way for real estate investors to unlock every square foot of potential in their property. And, as an added bonus, the presence of diverse applications on your property may even increase its desirability and value.
There are other, more hands-on ways to make money in real estate – renovation flipping, contract flipping, short sales, etc. –but the four listed above are probably the safest, most passive ways to earn money from a property.
Click the links below for any posts you have missed:
4 Ways to Add Italian Style to Your Home
How to Avoid Costly HVAC Breakdowns
How to Unlock a Deadbolt Lock Without a Key
Health Hacks to Transform Your Life
Do Air Purifiers Work for Mold?
Top Items to Consider for Your Apartment
I’d love for you to join my email list! You’ll receive a notification straight to your inbox which will include links to my latest home project posts! Simply enter your address below.
Thanks for stopping by! Have a wonderful day/night depending on where you are in the world! Go with God and remember to be kind to one another!
Toodles,
A worthy idea of turning our house in a source of income. Very well explained! Further, I would like to add that if you have big garden area free in your home, It can be used for small events too as given on rent.
Clear and actionable advice that’s a game-changer for property investors.