Making profitable investments has more to do with wise calculations and well-planned investment strategies than with luck or chance. Beginners can often struggle with creating a clear investment strategy, and often require the help of a professional for the same. There are a few sets of strategies that can be used to fulfil a variety of investment goals. It is important to understand a few, if not all of them to realize which could work in your favour.
In this blog, we give a brief overview of some of the popular investment strategies:
Buy-and-Hold Property
This is one of the easiest investment strategies for beginners. It simply requires you to buy a rental property, rent it out to a tenant, and collect regular rental income. It can be applied to both residential and commercial properties. Through such type of investment, the profit comes from the stable rental income and the potential price increment of the property.
However, in order to make a good decision while buying the property and lending it out, connecting with an experienced realtor or an agent can be necessary. They will save you both time and effort and will guide you throughout the process.
Short-term Rentals
Short-term rentals are a popular type of investment these days. The unique thing about this type of investment is that it does not require fresh realty investment. Investors can easily convert their vacation houses into short-term rental properties. They offer greater flexibility over the use of the property.
However, these investments can be risky too and do not offer a guaranteed stable cash flow. Such properties cannot be relied upon if you are looking to invest in property to get a steady rental income out of it.
Fix-and-Flip Property
This popular investment strategy requires a bit of expertise to do it right. It involves buying property in an undervalued area, fixing it up, and selling it at a greater price immediately. This type of investment can be very risky but it can also be very profitable.