The recent years have been nothing short of turbulent. In times of turmoil, investors tend to turn to more stable investments such as real estate, which is fast becoming the go-to side hustle for new entrepreneurs looking to diversify their portfolio and add passive income streams.
With so many options and burgeoning markets worldwide, it is an excellent choice for anyone who wants to start investing without quitting their day job.
In this blog post, we’ll look at the why and how of real estate as a side hustle and explore some options that you have for getting started. We hope you find something that suits you!
Real Estate Opportunities for New Entrepreneurs
1. Subletting
Already own property? Lucky you! You can start simply by subletting an empty room in your apartment, using the income to cover your mortgage or reinvesting it in another property.
2. Flipping
If you are handy with tools or know people who are, you might want to look into buying older, run-down properties, fixing them up, and then reselling them at a huge profit, also called ‘flipping’. You can also sell commercial property after renovations to capitalize on high-demand business districts.
While it requires upfront capital and a good eye for renovation potential, successful flips can bring in substantial returns within a few months.
3. Rental Income
One of the most straightforward ways of making money through real estate is by generating rental income. You buy a property at a good price, rent it out, and enjoy the passive income generated, using it for savings, reinvestments, or covering the mortgage.
4. Short-Term Rentals
In today’s remote and digital world, short-term rentals like AirBnb are giving property owners great success. Short-term rentals can command a higher price than yearly contracts, and renting out your property for a few months in a year also means you get to enjoy it during the off seasons.
5. REITs (Real Estate Investment Trusts)
REITs work like stocks and are a great way for beginners to start investing without outright owning property. You invest in a company that owns or finances income-generating real estate, and REITs pay out regular dividends and are easy to buy and sell through a brokerage.
They’re low-maintenance, require minimal capital, and offer exposure to the real estate market with less hands-on effort.
Why Real Estate Is An Ideal Side Hustle
Real estate offers you numerous choices on how to get started. You can start small, like investing in a real estate investment trust (REIT), or simply renting out a spare room. You can grow at your own pace and reinvest the profits, slowly building multiple sources of income and generating long-term equity that will more than likely appreciate over time.
In addition, property markets tend to be stable and appreciate over time, unlike other methods of investments like stocks or crypto, where you typically deal with wild, unpredictable swings and extreme volatility.
For new entrepreneurs, it’s a great way to dip into business ownership without taking on full-time risk.
Potential Challenges To Watch For
Nothing is perfect, and real estate investing does come with certain risks.
1. Market Fluctuations
Real estate markets are affected by global events like wars, a pandemic, inflation rates, and interest rates. A booming market might make it easy to flip a house for profit or raise rents, but a downturn can reduce property value and make it harder to sell or find tenants. You’ll need to research local trends, stay updated on economic news, and always have a backup plan to weather market dips.
2. Additional Costs
Most property purchases come with costs that developers don’t highlight, so be sure to get clued in on your local requirements like taxes, buyer duties, legal fees, maintenance fees, insurance, and repairs.
3. Local Legislation
Each country and region have different rules on property ownership, especially if you are looking at short-term rentals, tenant rights, and buying procedures. Be sure to do your research or consult a professional.
4. Tricky Tenants
Managing tenants can be challenging if you are renting out your property. While many are respectful and easygoing, some may pay late, damage property, or cause disputes with neighbors. Proper tenant screening, clear lease agreements, and consistent communication can help prevent issues, but even then, problems can arise.
Final Thoughts
Ready to do some real estate investing? The first step is getting your choice of property right. Zyon Grand is Singapore’s exciting new development located in the heart of the city.
Experience true luxury living in one of the world’s most dynamic, yet stable economies! Check out the Zyon Grand Price List now or make an appointment to view the showflat.