As the saying goes, there is no easy money in this world, you must strive to make money. It is possible to earn money even in real estate investing through smart tools and instruments.
Invest in Real Estate Investment Trusts (REITs)
Although a new phenomenon in the Indian subcontinent, REITs have been in the market for a long time. As a smart investor, you can invest in these REITs with a small amount and earn from the rental income generated by the managing bodies. Each investor gets returns based on his investment.
Nakul Mathur, MD, Avanta India said that although a new phenomenon in the Indian subcontinent, REITs have been in the market for a long time. For non-starters, a REIT is usually a large company that owns and manages a large income-generating company. real estate, These real estate assets can be hospitals, warehouses, large office spaces, shopping malls, hotels and a variety of commercial properties.
In addition, REITs can be traded on the stock market like every other equity share in the company. REITs offer the advantage of faster liquidation than traditional assets.
Infrastructure Investment Trusts (INVITs)
Similar to REITs, retail investor One can also invest in Infrastructure Investment Trusts or INVITs. Infrastructure Investment Trusts are large companies that own and manage operational infrastructure projects and earn from the income generated from these assets, said Virendra Kumar, Head – Business Strategy and Marketing, ARETE Group. In simple words, INVITS are deposit investment vehicles like mutual funds. They invest the earned amount in highway projects, power plants, airports, transmission lines and large scale pipeline projects etc. Furthermore, InvITs are designed and managed in such a way that 80 per cent of the investors’ money is invested in revenue. -Produced and completed projects. This minimizes the risk associated with under-construction projects.
real estate stock
One of the most popular ways to take advantage of the growth in the real estate market is by investing in a pool of real estate stocks. Although direct investing in stocks is a high risk, a rising market also presents an opportunity to earn a decent return over the long term.
“If you are wary of investing directly in stocks, you can choose a thematic mutual fund that focuses on the real estate market. Here, a pool of top real estate companies will be targeted and your money will come into the real estate market. The mutual fund investment method also minimizes risk as the differential performance of different players normalizes the returns,” said Atul Goel, MD, Goyal Ganga Group.