Owning and buying real estate is a great investment strategy. Unlike bond and stock investors, real estate owners may use the tactics of leverage for buying property.
Aspiring real estate investors can purchase any property employing methods of leverage, giving a part of the total cost, then to pay off the balance eventually.
The 4primary methods, to make more cash, by using the real estate are- to become the land-lords of rental properties, real-estate flipping, real-estate investment groups, and RETs or Real Estate Trusts.
The four steps of investments
The 4ways of investing in real estate:
Becoming the land-lord- Becoming the land-lord needs skills like patience for managing the tenants. You will need for financing the maintenance costs. Properties for renting will offer regular income. Several related expenses are tax deductible; losses can result in offset gains in other investments.
Investment of real estate groups- The option is great for the people who want to own a real estate, minus the hassle of running it. Real-estate investment groups resemble small mutual funds, which invests in the real estate properties. These groups are quite safe for investing into the real estate.
Real estate flipping- This option is the most ideal for those who have some experience in the real estate valuation. Real estate flipping is another aspect of real estate investment. Property flippers will invest to improve the property. There are flippers who make a lot of cash by buying properties, and then adding values by selecting the method of renovation.
REITs or Real estate investment trusts- The option is ideal for people who want more exposure of the port-folio, minus the custom real estate transaction. These are Dividend paying Stocks and the core holdings comprise the real-estate properties having long term cash producing leases.
The bottom line
Whether the Real estate investors in South Africa want to employ their properties for generating new rental in-come, in case of any kind of investment, there is a profit potential within the real estate industry.
About the frontier markets
In the arena of investing hierarchy, frontier markets are bottom to the rung of three. The developed markets are at the top. A country’s market condition plays a great role in deciding for the kind of market is. There are around 30 frontier markets, and majority of them are in Africa, Middle East, Asia and in the middle of the Europe.
According to one of the biggest Index Compiler, the frontier market has to meet the subjective criteria. The market should stay open to international ownership, and partial capital flows. The objective needs to incorporate accommodating at least 2 organizations which will be worth of around 800 Million US Dollars, each.
The present condition of the frontier markets
The Frontier market investment opportunities are shrinking, as several of the nations are gradually becoming emerging markets. Kuwait, now accounts for the MSCI frontier markets index, and comes under the consideration for an upgradation.
The frontier heavy-weights are replaced by the smaller territories, which can’t make up for shortage in the market value. Although, the world of frontier market has lost a significant amount of the bulk, the smallest nations gets the benefits as funds are channelized for diversifying the allocations.