If you think investment properties are only for those who earn six figures a month, you’re mistaken. Even on a modest income, it is possible to venture into this kind of investment. You can always start your way toward financial freedom with a real estate investment.
At this point, you might be curious about how you can do this. The first step would be to run a check on your current financial situation. If you have minimal debt, enough financial leeway to put money in an investment and willing to take a risk, you’re good to go.
After that, you can choose from the following approaches:
If you already own a home, you can probably tap into the equity of your current property. Upon the release of the money, you are free to do with it as you wish. A smart way to use your equity would be to invest in another property—this time, something that would bring money to your coffers. Look for a good property, calculate the risk and invest.
Modeina recommends finding a business partner before buying house and land packages. In this setup, you get to own a portion of the property, not its entirety. While the partnership setup would split a portion of the earnings, this will also halve your expenses. If everything goes well, the investment could take off and allow you to purchase a new property on your own.
A long settlement setup is almost the same as an off-the-plan strategy—it can be quite risky. You have to make sure that the property you’re buying is in a location that will boom in the years to come. The logic here is to invest in something low cost and wait for it to grow in value. Add a few cosmetic renovations in the mix, and you can turn in a profit with this strategy.
Your income shouldn’t be a hindrance to become a smart investor. Buy your own property and work your way towards financial freedom with these strategies.