Real Estate Investment

5 Proven Ways To Generate Income From A Real Estate Investment

Real estate has always proven to be a lucrative option to appreciate one’s investment. Unlike the stocks or mutual fund, real estate investment gives you a benefit of earning long-term income, making it a reliable source of generating regular cash flow. In the realty sector, the investors can purchase properties using leverage by paying a portion upfront and then paying off the overall balance in installments over the time. Now, the question arises, how can you make money from your properties? Well, there are several different ways to generate income from your real estate asset, some of them are listed below: 

Long-term rentals

The most common way to make money from a real estate asset is long-term rentals. One can generate a rental income by two ways – first is the conventional way of renting out your home or any spare property for a fixed monthly rent and allowing the tenant to live in his own way. Another is offering Paying Guest (PG) accommodation. Many students and young working professionals majorly give preference to PG houses in metro cities. 

Commercial property rentals 

Commercial Real Estate (CRE) has become the most sought after investment choice, especially in the post-COVID era. It has caught the attention of several big investors and major companies over the past decade. These investors acquire multiple properties and refurbish them as per local needs through upgradation, renovations, and construction before renting them out for commercial purpose. 

House flipping

As the term “Flipping” is defining itself, in this method, an investor buys a property for the sole purpose of reselling it after some time. However, one should keep a close eye on market trends to dispose of the property when the projected price level is reached, or if you foresee any downfall in the property rates in the coming days. Thus, in the real estate sector, this process is known as a buy-and-hold policy. 

Airbnb and vacation rentals 

The growth of the tourism sector in India has paved the way for investors to generate more passive income. In fact, ever since the Indian tourism industry started gaining momentum in the ‘New Normal’ era, the demand for home-away-from-home rentals has surged yet again.

With rental housing on boom, this is the right time to use your spare property as a small hotel for accommodating modern-generation tourists. But before listing out your space on websites like Airbnb, it is important to check local rules and regulations and city’s bylaws. 

Real Estate Investment Trusts (REITs) 

Last but not the least, REITs. There is hardly any investor in the modern era who is not familiar with the emerging concept of Real Estate Investment Trusts. You can invest in REITs in a variety of different ways, including purchasing shares of publicly traded REIT stocks.

It is a secure mode of investment that provides all types of investors a platform to generate regular cash flow, just like mutual funds. 


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