Are you curious about real estate investing but don't quite know where to start?
You're not alone. Many people see the potential of real estate investing but can feel overwhelmed by the many details and decisions that need to be made. That's why below, we'll guide you through the basic steps of real estate investing and how to get started easily through crowdlending.
Learn about the importance of understanding the market, choosing the right property, securing proper financing and much more.
Investing in real estate can be done in many ways, and we hope we've helped you understand your options.
You know you want your money to grow through investing, but you may be unsure where your wealth will have the best conditions to grow.
If you choose to invest in shares, you can get started with relatively little money and get a taste of the market and learn more without taking on too much risk.
Real estate investing typically involves much larger amounts of money and is therefore less accessible - at least if you choose to invest in the traditional way, where you buy a home with the intention of reselling and/or renting it out.
However, one doesn't exclude the other, and it's also possible, for example, to invest in real estate stocks if you're interested.
Another and more alternative form of real estate investment is crowdlending, where you invest a small amount of money in future real estate projects and grow the invested money through the interest you receive for having your money invested. Crowdlending presents an exciting real estate investment opportunity for beginners because you can start investing in real estate with a relatively small amount of money in your account.
Investing in real estate is a strategy that can lead to significant financial gains. But as with any investment, it's important to understand the basic principles of real estate investing before diving into this world.
Real estate investing, in its simplest form, is about buying property with the intention of generating an income. This can be through rental income if you choose to rent out the property, or through an increase in the value of the property over time, which can result in a profit when the property is sold.
There are several different types of real estate investments, including single apartment purchases, larger residential properties, commercial properties and mixed-use properties. Each type has its own advantages and disadvantages and it's important to understand these before making an investment.
Investing in real estate can be one of the most profitable and stable investment strategies if done properly. Here are some of our tips on how to ensure success in your real estate investment.
One of the most important elements of success when investing in real estate is having a super sharp understanding of the market. Never invest in an area you don't know or haven't researched thoroughly. Having a keen understanding of the market includes knowing current property and rental prices as well as local market conditions. By having a good understanding of the market, you can more easily identify good investment opportunities and avoid potential pitfalls.
It may go without saying, but not all properties are good investments. So when looking at properties to invest in, it's super important to consider factors such as location, the general condition of the property, as well as the potential for rental income and growth in property value.
Securing the right financing is a crucial part of real estate investing. Thus, it's important to ensure that you have sufficient financial resources to cover the costs of the property investment, including the purchase price, renovation costs, ongoing maintenance and any periods without rental income.
Real estate investing is not a quick-fix that offers a huge return in no time at all. It can take time for property values to rise and there can be periods of market downturns. Therefore, having a long-term investment strategy and being prepared to hold onto your investment through market fluctuations can help ensure the success of your real estate investment.
All forms of investing come with certain risks, and real estate investing is no different. It's therefore super important that you are aware of these risks before you start investing in real estate.
Here are some of the most common risks:
The real estate market is subject to economic cycles and property values can rise and fall over time. This means you could lose money if property values fall after you've purchased a property. Although the real estate market has historically been associated with excellent returns, there are no guarantees that this will continue.
Propertiesare not easily tradable assets, which means it can take time to sell a property if you need to free up cash quickly. This can be a risk if you need to sell your property quickly and the market is slow.
Ifyou plan to rent out your property, there are risks associated with tenants. This can include the risk of tenants not paying their rent on time, damaging the property, or that the property is empty for periods of time and you therefore lack income from it.
Properties require ongoing maintenance and repairs, and these costs can be significant. If you haven't budgeted for these costs, it can affect your profitability.
Another common pitfall is over-leveraging, where you borrow too much in relation to the value of your property.This can make it difficult for you to cover your borrowing costs, especially if the value of the property falls or if you have periods without rental income. To avoid this, make sure you have a solid financial plan and don't borrow more than you can afford to pay back.
Historically, investing in real estate has long provided good returns. If you want to start investing in real estate but aren't quite ready to buy a physical property, crowdfunding is a great way to get into real estate investing and is perfect as a real estate investment for beginners.
Through crowdlending, you can lend your money for the realization of new real estate projects. The loan carries interest for the borrower, which represents your return on investment (usually between 9-13% return per year).
In other words, you get your money repaid over a certain period of time by the borrower, who also has to pay interest on the loan. This interest goes directly to you.
This allows you to enter the market and gain your first experiences. Start small and always make sure to choose projects you can see the potential in - it makes it more fun to be invested.
At Fundbricks, you can get started with real estate investing for as little as €10,000.
See all our projects here
We follow the money laundering guidelines.
Select the amount you want to lend for each property project.
Receive cash repayment of your loan as well as returns when the property project is completed.
WHAT ARE YOU WAITING FOR?
Historical returns are no guarantee of future returns. The money you lend to projects can therefore increase or decrease in value and there is no guarantee that you will get back the full amount lent.
READ MORE
