How to Invest in Property without lots of Money?
The idea of investing in property is cool! Owning your own piece of land seems like a great achievement, but for many, it seems like just a dream. So, How to Invest in Property without lots of Money?
With the price of properties as high as they are and the income requirements from the bank, for most of us owning any property seems unattainable. But what if I told you there was a way! Here are three ways you can invest in properties with just R100:
Property Companies or Real Estate Investment Trusts
Property companies or Real Estate Investment Trusts (REITs) are listed on the stock exchange and can be bought and sold like other shares. These investments are made into properties and the companies that manage them. Property companies issue a Dividend on the profits made by the company. While REITs distribute all earnings from the properties held after they have deducted management fees.
Property Etfs are also listed assets that can be traded on the stock exchange. They are made up of a group of Property Companies and REITs offering you a diversified property portfolio without needing to lift a finger.
Easy Properties is a new product of the Purple Group. They offer fraction share investing directly into property developments. The owner will rental income and can sell the property when the value appreciates. This style of investing is very close to buying a physical property as it allows you to choose from available properties, without having the stresses of managing it.
Property Investing does not have to be expensive! If you speak to your advisor about these lower-cost options, you can invest in property too! I use Easy Equities as they offer great service and low costs but speak to your fsp about your options.