(TNS)—Only 15 percent of Americans are investing in real estate other than their primary residence, according to a real estate investing study by RealtyShares. In fact, two-thirds of Americans believe that investing in real estate is too difficult, too costly or beyond their capabilities. This might be true if they were considering commercial real estate investing, which can be a risky move for new investors, but there are safer options.
What Is Real Estate Investing?
Investing in real estate means buying property to earn income and build wealth, either on your own or with the help of real estate investment companies. Many investors own more than one property, and their earnings include rent paid by tenants and the equity they build through appreciation. Investment property owners have different tax considerations for their investment properties than they do for their primary residence.
Investing in real estate doesn’t have to be intimidating. Here are seven ways to start investing in real estate now.
Buying rental property is one way to get started in real estate investing. Buying a rental property starts with choosing the right property, and then finding renters, maintaining the property, dealing with tenants and collecting rent each month.
One stumbling block might be locating an affordable property worth investing in.
“Traditional real estate investing is alive and well, although it’s largely dependent on geography,” says Aaron Milledge, founding partner and chief compliance officer of Targeted Wealth Solutions, LLC. “In some places, home prices have appreciated so much that it may be difficult to find a lucrative deal.”
Rental properties not only provide rental income, but also tax benefits not available with other investment opportunities. An additional advantage is that you have more control over your rental property than you do over investments such as the stock market.