How to Earn Money with Real Estate Investments
So, you have finally decided to become a smart real estate investor. You're eager to get a big income, but sometimes it is not enough to deal with property and be wealthy. Thus, you have to thoroughly examine the market, pick a strategy and calculate future costs in order to start making money with real estate investment. Let's see the ways that can generate wealth.
Producing Income from Rent
The first step to getting money from real estate is to have regular payments of income. In other words, rent is the most reliable way to earn stable money no matter what kind of real estate you choose to invest in.
Raw land Income
If you're the owner of the raw land property, it gives you many financial opportunities. For example, companies may pay you money for any discoveries or added structures on your land, such as pump jacks, access roads, cell towers, pipelines, etc. In Ukraine, for instance, the prices for the land are reasonable and lower than compared to the Western European market: the average value of agricultural land is $870 per hectare in 2021. In contrast, the acre of farmland in the U.K. in 2020 cost between £12,000 - £15,000 depending on the location.
Residential Property Income
The most affordable way to get a stable passive income. You basically get money from tenants who pay you a fixed amount monthly, so you don't have to be worried about your money even in case of inflation or unforeseen circumstances. Anyway, you will earn your rental income. The amount of rent money depends on the property and its location. For example, the apartments in Ukraine's capital, Kyiv, are beneficial for smart investors because of their prices and convenient location.
Thus, the minimum price of renting a decent one-bedroom apartment in Shevchenkivskyi District will be around $1000 per month in 2021, followed by Pecherskyi District with a price of $850 per month. Moreover, investment in residential real estate in Ukraine annually brings smart investors up to 15% of yield, which attracts many businessmen every year.
Commercial property Income
You may also earn money with commercial property rentals in the form of option income. For instance, many commercial tenants tend to pay fees for the options like the right of first refusal on the office next door in order to hold those options. Consider the best prices on the Eastern European market, particularly in Ukraine, where 150 sq. meters will cost you around $2100, while the commercial property of the same area in Poland will be around $2700.
Earning Income in Residential Property
Buy and hold
The easiest way to get a stable income: you simply purchase a property that may be a house, apartment, or another property and rent it out. Moreover, to get even more money monthly, you may make a slight renovation, and the price will eventually rise. Therefore, the rental income will fully cover the mortgage and other housing expenses.
Another way to earn money on property is flipping, where you can add high-return fixes to houses in a short time and then sell them. Flipping is pretty profitable, especially if you easily deal with the properties and know how to fix them up properly. However, you may need a team of professionals to help you out with renovations.
DGY Investments assists smart investors in starting their path in real estate investment and make a stable passive income. Our team of experts studiously examines the market in Ukraine and provides our clients with the best property offers. Don't miss the chance to earn up to 15% annual yield out of real estate investment together with DGY.