With the pandemic putting a stop to normalcy, and changing the regular working day for the modern professional, many have been adapting financially, leveraging both smartphone apps and online services in order to keep their investment profiles dynamic and healthy, where possible. However, property investment in particular might seem like something that’s difficult to get involved with when stuck in the same four walls day in and day out.
Interested in exploring your investment options further in 2021, but are unsure of where to start when stuck at home? Here are a few tips on ways that you might be able to delve into investing in the real estate market from home, using the range of technology readily available at your disposal. Read on to find out more!
Getting started
If you’re unfamiliar with property investment and don’t know where to even begin looking, or the sort of capital that you might need to have available in your investment portfolio to get started, there are a range of online guides and services to help you out. Be sure to be careful however that you’re looking in the right place for the right information, and that the sources you’re confiding in are legitimate and up to date. Investment always comes with risks, and no one understands your financial decision better that yourself, so try to have a level of self-awareness before plunging into something that might not be right for you.
In terms of online resources that you can delve into, RWinvest, for example, offer a range of content types with updated information and tips, depending on the sort of way you like to consume your media. There are videos and colorful infographics, for instance, if you want to read over something whilst having a break from your working day, or even informative podcasts on different topics within the property market if you prefer to listen passively while you work or complete chores/other tasks.
Also Read: Ways to Save for Retirement as a Real Estate Agent
Investing in the future
One of the benefits of property as an investment asset class is that it is a physical, tactile investment, in something tangible that you own and thus is more likely to stand the test of time, against something perhaps a little bit more volatile, such as a stocks/shares investment strategy. However, many of the best and most lucrative options available to savvy investors at the moment are in Off Plan developments in growing cities around the world, planning for the future of an area and promising higher rental yield percentages and house price growth.
Of course, you need to do your due diligence and make sure that the company you’re investing with is reputable and has a proven track record of previous completed developments, but if looking for your next big investment prospect remotely, these can be some good options to consider if you’re interested in a specific area that you think could be lucrative in the years to come. Liverpool in the UK is a good example of a city like this.
Tip – Depending on the type of investment portfolio you want to keep, and the sort of person you are (factoring in things such as free time that you have available etc.), you should also consider whether or not a hands-on or hands-off strategy is right for you. You can find out more information on these terms online, but the key point is that those with enough on their plate already might decide to take a hands-off approach, taking in yields and benefits of owning property but not having to deal with the day to day minutia of tenant issues etc., which a management company will usually deal with on their behalf.
The virtual viewing
A prime solution for both those wanting to invest safely and remotely, and those investing from abroad that simply can’t reach their chosen destination to check over a potential investment property in person, this growth in VR virtual viewings in recent years has been important during the pandemic period. Using your smartphone in conjunction with an easily affordable VR lens cradle attachment, you can get a first-person perspective and look into a potential property strategy. It might not be as good as the real thing, but it could help you to get a feel for a space better than a simple blueprint or CGI image.
FAQs ON How To Invest in the Real Estate Market From Home?
Investing in real estate traditionally required in-person visits, meetings, and physical inspections. However, with the growth of online platforms and technology, you can now build a real estate portfolio without leaving your home. Below are common questions and answers on how to get started with remote real estate investing.
What Are the Best Online Platforms for Real Estate Investment?
There are several online platforms specifically designed to help investors get into real estate from the comfort of their home. These platforms offer different types of real estate investments, including:
- Crowdfunding Platforms: Websites like Fundrise, RealtyMogul, and CrowdStreet allow you to invest in commercial and residential properties with a relatively low initial investment.
- Real Estate Investment Trusts (REITs): Publicly traded REITs can be purchased through stock trading apps like Robinhood or traditional brokerage accounts. Examples include Vanguard REIT and Realty Income.
- Online Property Marketplaces: Platforms like Roofstock specialize in turnkey rental properties, where you can buy fully-managed rental homes without visiting the property.
How Can I Start Investing in Real Estate With Little Money?
You don’t need to be a millionaire to start investing in real estate. Here’s how you can get started with minimal capital:
- Crowdfunding Platforms: Some platforms, like Fundrise, allow you to start investing with as little as $500.
- REITs: Many publicly traded REITs are accessible for small amounts, depending on their stock price.
- House Hacking: You can purchase a multi-unit property, live in one unit, and rent out the others. With the right financing options, this strategy can require a smaller down payment.
What Are the Risks of Investing in Real Estate Remotely?
Remote real estate investing can be highly rewarding, but it comes with certain risks:
- Lack of Control: When investing through crowdfunding or REITs, you typically have no say in property management decisions.
- Market Volatility: Like all investments, real estate is subject to market fluctuations, which can impact your returns.
- Property-Specific Risks: Issues like location disadvantages, tenant turnover, and maintenance costs can affect the profitability of rental properties.
To mitigate these risks, do thorough research, diversify your investments, and consider working with trusted platforms and professionals.
How Do I Evaluate Real Estate Investments Without Visiting the Property?
You can evaluate potential investments using online tools and resources:
- Virtual Tours: Many property listings now offer virtual tours, allowing you to see the property from your home.
- Online Market Data: Use websites like Zillow, Redfin, or Realtor.com to analyze market trends, property values, and rental income potential.
- Property Management Reviews: For turnkey investments, check online reviews and ratings of the property management companies involved.
By combining these resources, you can make informed decisions without the need for in-person visits.
Can I Invest in International Real Estate From Home?
Yes, you can invest in international real estate remotely. Here’s how:
- Global REITs: Some REITs focus on properties in international markets, giving you global exposure.
- Crowdfunding Platforms: Certain platforms, like RealtyMogul and Property Partner, offer international real estate investments.
- Direct Purchases: Some countries allow foreign investors to purchase real estate, and you can handle the process online through international property brokers and legal services.
Before investing internationally, research the local laws, tax implications, and market conditions.
What Are the Tax Implications of Investing in Real Estate From Home?
Real estate investments come with specific tax benefits and obligations:
- Depreciation Deductions: You can deduct the depreciation of rental properties from your taxable income.
- Capital Gains Tax: Profits from selling a property are subject to capital gains tax, but long-term holdings may qualify for reduced rates.
- Passive Income Tax: Rental income is typically considered passive income, which may be taxed differently depending on your tax bracket.
Consult a tax professional to understand the specific tax benefits and liabilities associated with your investments.
