Real estate investment involves the buying, holding, possession, control, rental, or sale of real estate as a part of an investment plan. Generally, improvement of real estate property as a part of an overall real estate investment plan is normally seen to be a subset of real estate investment known as real estate developments. A good part of 房地產投資 today is being done in the form of real estate rehabs, especially in areas with an increase in the demand for rental properties.
Rehabs are basically renovations of existing structures to bring them up to market condition or the latest style. The objective is to improve the value of the property for as high a return as possible. Rehabs are usually done for residential purposes as well as commercial ones. Residential real estate investing, in terms of rehabs, can be done by investors who are looking at developing a piece of land that they can turn into a residential community or housing project, or even turning it into a vacation home. Commercial real estate investors may look at ways of improving real estate around their establishment as a means of attracting tenants, which will result in high returns for the investors.
Real estate rehabs do not involve purchasing a physical asset like a house or an apartment. Real estate rehabs are more about the physical aspect of the properties, the improvement of such aspects as roofs and floors, installing new appliances etc. The physical assets involved in the process are not always present in the acquisition of real estate properties but can be instrumental in the process. For instance, a physical asset like a house can be made into a better place to live by rehabbing the house.
One of the advantages of real estate investment is that there are some techniques which allow for leveraging of the available funds. For instance, in a real estate investment on a single property like an apartment building, a single gain can be realized through rent collection and from its appreciation. However, this asset does not have to be bought just to gain profit but can be developed into other assets. This allows the real estate investor to leverage his funds and attain much higher returns than the rate at which the fund can be invested.
A strategy of real estate investment is a very sound idea if you want to make money without putting out a single dollar as capital. In the past people had to put up huge amounts of capital to make money from their investment properties and this meant that they had to keep a regular monthly budget to see what was happening in their accounts. With the emergence of the strategies of real estate investment, people now have a way of making money without having to follow a strict monthly budget plan. They can just maintain their regular expenses and make money automatically whenever the need arises.
For instance, one could use the strategy of real estate investment to earn money when the real estate market in a country is going through a boom like the one that took place after the real estate bubble in the United States happened. When the prices of real estate properties go up, investors take advantage of the situation by renting out their properties for a fixed time period. The profit made here can be much higher than what one originally paid for the property because real estate prices usually appreciate greatly in a short period of time. Another common strategy used by people all over the world for earning a profit is by purchasing a single physical asset like stocks and then selling it to another buyer who needs it for a higher price.