The real estate market is filled to the brim with investment opportunities and is an excellent alternative to other kinds of investment? Why? First off, Asaf Izhak Rubin explains that it boasts a low correlation with the stock market and this makes it less volatile. In addition, it gives you a lot more tax breaks and as long as you have geographically diverse assets, you will become a resilient and consistent investor who can weather all kinds of storms.
But, you should not forget that this also depends on the investment strategies you use and there are a number of them to explore in the real estate market. Asaf Izhak Rubin sheds light on some of the top ones you can try out this year:
- Investment in rental properties
As long as you are able to find good and reliable tenants, investment in rental properties can offer you stable passive income. Many people do not opt for this strategy because they are concerned about not being able to find the right tenants. Asaf Izhak Rubin suggests that you take advantage of a property management company. They handle everything from screening the tenants and collecting rent to ensuring maintenance and even evictions. You should also know what amenities you should offer to the tenants and how to price rent correctly because you don’t want vacancies.
- Purchasing and holding properties
Also referred to as rehabbing, purchasing and holding properties involves doing enough rehab that you can rent the property. The basic principle is that the value of the property will appreciate over time. Therefore, you can enjoy the benefits of a steady income every month and also see your property going up in value. Asaf Izhak Rubin says that excessive rehabbing will only reduce your profits. Nonetheless, you should always do research to buy a suitable property for this purpose because not all will qualify.
- Flipping a property
The difference between purchasing and holding properties and flipping is that in the former you rehab and hold onto the property, but in the latter, you rehab and sell it. However, Asaf Izhak Rubin states that you should not forget that the key is to do enough renovations that can help you sell the house for the maximum price and not more because it will cut down your profits. This might seem like a get-rich-quick scheme, but you should bear in mind that flipping houses is no piece of cake. You have to correctly evaluate how much work a property needs and whether it will fetch you enough profits or not.
- Live-in flip
This particular real estate investment strategy combines the aspects of rehabbing and flipping. To put it simply, you will live in the property you are planning to flip while it is being rehabbed. Why do people do this? As per Asaf Izhak Rubin, this can actually offer you a lot of tax benefits because the property becomes your primary residence and this can help you get exemptions. Of course, this will also depend on where you are based.
- Real Estate Investment Group (REIG)
These are groups of private investors where they come together to pool in their investment and their knowledge of real estate and take advantage of the different strategies outlined above. Asaf Izhak Rubinsays that REIGs can offer you flexibility in terms of membership fee, structures as well as degree of participation. These are usually governed via private agreements and it is an excellent choice for someone who wants to make an investment in physical real estate.
These are some of the top real estate investment strategies that you can explore in 2022. Market experts like Asaf Izhak Rubin recommend that you check out the options first and then choose one that suits your risk tolerance, cash reserves, and time and also consider how much you want to be involved in the investment.