Real estate value proposition
Real estate is a tangible asset that typically appreciates over time. As a result, it's one of the more popular investment classes for building wealth.
While the Zammit family has found itself in a unique situation with regards to surrounding developments, there are other benefits to holding onto your home. As you pay off your mortgage over time, you'll build home equity. This means you’ll likely come away with more cash when you do eventually sell — and you can use those profits to increase your down payment and get better mortgage terms for your next real-estate venture.
Also, as you build home equity, you become eligible for a home equity line of credit (HELOC), which generally gives you the ability to borrow against your home at a better interest rate.
If you choose to rent part of your home or use it as an investment property, your rental income may help pay for your mortgage, other real estate investments or broader financial goals.
The benefits of buying and holding on to physical property are vast — but if that’s not possible for you, there are other ways you can invest in real estate.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreDipping your toes in real estate
If the challenge of buying, maintaining and holding on to physical property doesn’t appeal to you, there are easy ways to invest in real estate without all the hassle.
Today, there are simple online platforms that allow you to invest in real estate investment trusts (REITs) and crowdfunding deals.
REITs are publicly traded companies that own income-producing properties such as apartment buildings, shopping centers and office towers. They collect rent from tenants and pass a portion of that income to shareholders in the form of regular dividend payments.
They can help you dip your toe into commercial real estate, which has outperformed the S&P 500 over a 25-year period. Until recently, this option was only available to those with millions to invest.
Real estate crowdfunding is a relatively new way to invest in real estate. It uses the internet and social media to raise capital by collecting small sums of money from a large group of individuals and businesses in order to collectively invest in a real-estate acquisition. Although it offers a relatively low entry point to become a shareholder, it can be risky.
Shares in a REIT can't be sold quickly as the average stock, and the price can change drastically based on factors such as interest rate hikes. The Fed hiked the rate again July 26, which could lead to a drop in REIT share prices due to decreased demand. However, a REIT can still offer a cheaper option for getting into the market.
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