Real estate investment: 3 profitable options beyond buying and selling real estate

Exploring profitable options beyond buying and selling real estate is crucial when investing. With the current pandemic affecting the entire world, the real estate market has not strayed from the rule. Concerning renting, after 2020 there was a drop of around 20% in rents in some areas due to the transfer of a large number of local accommodation houses for traditional rental, in 2021 some stability is expected.

In this article, we present three profitable options beyond buying and selling real estate. Get to know them now.

Profitable options beyond buying and selling real estate

Real Estate Investment Funds

They represent an asset for investors who want to have a presence in any sector or country. In this matter, three types are worth highlighting:

  • Open: Investment funds whose participation units are variable in number;
  • Closed: Investment funds whose participation units are in a fixed number;
  • Mixed: Mutual funds that include the two aforementioned categories (include fixed and variable number units).


Real estate investment funds can act in the following activities:

  • Acquisition of property for rent or other forms of onerous exploitation;
  • Acquisition of real estate for resale;
  • Acquisition of other rights over real estate, under the terms provided for in the CMVM regulation, with a view to their economic exploitation.

Profitable options beyond buying and selling real estate

 

Investment and Real Estate Management Companies (SIGI)

Its main objective is to boost real estate investment and the rental market, making it an excellent option.

How are they distinguished?

  • SIGI have a minimum investment of €5,000,000 in share capital;
  • SIGI must request, every 8 years, an assessment of the assets in the portfolio from an independent external auditor registered by the CMVM.
  • To benefit from the tax advantages, SIGI will have to present at least 75% of the portfolio consisting of rights to real estate for lease or “other atypical contractual forms that include the provision of services necessary for the use of the property”

Real Estate Crowdfunding

It is the most recent option that is still at an embryonic stage in the country when compared to the rest of Europe. Even so, through real estate crowdfunding, investors have the opportunity to fund projects collectively, sharing the profits among all stakeholders after their sale.

It is also distinguished by the fact that anyone can invest with small stakes via the Internet.

Read too: Real estate investment: how does it work?

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