Raleigh Real Estate Investment
Investing in real estate can be a smart and profitable financial strategy. There are a couple of advantages to purchasing real estate as opposed to other types of investments, like stocks and bonds, and it’s not really that hard to get started. Plus, the Raleigh area is an especially great place for real estate investing thanks to its hot market and soaring population growth.
Here’s what you need to know about investing in real estate in Raleigh.
Why Invest in Real Estate?
There are a few big advantages to investing in real estate. Firstly, there’s portfolio diversification, which really just means that real estate behaves differently from the stock market. Secondly, unlike stocks and bonds, real estate is tangible, meaning your investment isn’t just going to vanish one day if a bank or business goes under. And thirdly, real estate investment provides predictable, stable income, which simply means that unlike stocks and bonds, which jump up and down in value, homes pretty steadily accrue in value.
How Can I Invest in Real Estate?
There are a number of different ways to get involved in real estate investment. The most common way is simple homeownership! Just buying a house, even if it’s the one you live in, is investing, though you’re not going to see any financial gains until you actually sell your home. Here are some ways to actively earn income through real estate investment.
Simply put, you buy a property and become a landlord. Rental real estate has the advantage of providing regular monthly income—but does require a bit of extra work, upkeep, and money on your part. Many rental owners will hire a property management company to take care of the day-to-day details, like advertising the property, screening tenants, collecting rent, and handling maintenance issues.
Rental properties can be residential, commercial (e.g. office buildings), retail (e.g. strip malls), or even industrial or mixed-use.
Real Estate Trading/House Flipping
Buy a run-down or underpriced house, fix it up, sell for more! The concept is pretty simple, and when done correctly, it can be quite profitable. However, house flipping isn’t for the faint of heart or the inexperienced; usually, a high level of market and repair knowledge is required to determine whether a property is a good investment. In other words, a flipper has to be able to determine if a home can be adequately repaired without spending more than will be gained in the sale.
House flipping is mostly common with residential properties.
This is a less traditional form of real estate investing: essentially, you’re buying stock. A Real Estate Investment Trust (REIT) is a company that owns real estate and sells shares to private investors. Meaning, you’re basically just buying stock in real estate. The advantage is that it’s much cheaper, lower risk, and less work than traditional real estate investing, but you don’t have any say in what happens to the property, and you likely won't earn as much as with more traditional investments.
REITs can be a bit more diverse, including residential and apartment complexes, or even hotels and other businesses.
Why Invest in Raleigh?
Raleigh is a great place for real estate investing, mainly because the market is hot and in high demand… and job and population growth mean it’s likely to stay that way. Real estate forecasts for 2019 show predicted home value increases, which is good news for flippers and homeowners. And for rentals, the soaring job market is a huge draw particularly for millennials and young professionals—many of whom prefer renting to buying.
Ready to Start Investing in Real Estate in Raleigh?
Are you thinking of investing in real estate in the Triangle area? Whether you’re buying your first-ever home, are considering property management, or want to start flipping houses in the Triangle, Carla Freund Realty is here to help. Give us a call and find out how we can help you meet your real estate goals.