3 Smart Real Estate Investments That Aren’t Your Typical House
According to the latest Bankrate survey, 31% of Americans chose real estate investments over stocks. The Silent Generation, Baby Boomers, Gen X, and Millenials think of real estate as the most profitable investment. Millennials are the most active investors in real estate. They prefer the stability of property as an investment portfolio. They are also overly optimistic about the growth and potential of real estate investments.
When it comes to real estate investment, people now choose to move to smaller American cities. Places such as Austin, Nashville, Seattle, or even Boston are becoming popular for individual landlords. Ultimately, properties in smaller cities are more affordable than in New York or LA. Additionally, small investors look for opportunities with growing demographics and employment. But that doesn’t mean that every real estate investment should be a rental home. Millennials are renewing the investment portfolio. They have helped introduce strategies that are not the typical house.
Making the luxury dream come true
Buyers who can afford to purchase a luxury real estate can launch a profitable rental side hustle. Indeed, the demand for single-family homes, private gardens, and private pools is driving the market. Investors will soon be able to promote their properties for short-term rental. Platforms such as Airbnb are permitting safe rentals to holidaymakers and business travelers. In a post-pandemic anxious environment, travelers are likely to consider luxury real estate as the safest option.
Additionally, as the pandemic situation eases, luxury rentals can target romantic getaways. For investors, this means marketing their property as a couple’s rental. It is a huge market as newlywed couples spend approximately $8 billion per year on their honeymoons. The appeal of luxury accommodation is real and justifies the price tag.
Give the local economy a boost
The pandemic has transformed the business world. A lot of companies have chosen the virtual office as their main workplace. Yet many still need to secure a small office to serve as a physical HQ. For investors, it’s the ideal opportunity to buy an office building and look for new tenants. Typically, commercial tenants prefer long-term leases, which guarantees a safe source of income. Ideally, commercial landlords need to hire a trustworthy property manager to protect their assets. The property manager can also help scan potential tenants.
The pandemic has also driven the resurgence of solo businesses. It can be more profitable to turn a small office into a desk share service for solo entrepreneurs and startups. Deskshare services tend to offer short-term leases, which can range from daily to monthly bookings. Deskshare offices also should include additional amenities, such as a reception desk, wifi, office kitchen, break rooms, etc.
Garage space in town
Here’s some good news for real estate investors who are working with a small budget. You can rent out parts of your property, such as your garage. Renting out your garage is unlikely to drive a high return on investment. However, it is an easy approach to build investment capital and start your real estate portfolio.
If you don’t want to become a residential landlord, you need to diversify your real estate portfolio. Investors can build a profitable portfolio with varying levels of investment. Luxury estates and garage space can both be part of a healthy real estate portfolio. Which is your favorite non-house strategy?