Invest In Real Estate

5 Ways To Invest In Real Estate Without Buying Property

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Invest In Real Estate? It turns out that there are many types of property investment that you can follow, lo! One of them is online property investment. Come on, see the various types of investment here!

Many people think that property investment can only be done by buying or renting buildings.

In fact, now there is such a thing as online property investment that doesn’t require you to buy a house to invest in.

Make no mistake, the properties that are traded online are also quite diverse, ranging from houses, apartments, shop houses, shop houses, to hotels.

Still, have no idea what online property investment looks like?

Come on, just take a look at the various types of online property investment that you can easily do from home below!

Types Of Real Estate Investments To Know

Buying Property Developer Shares

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In addition to buying property products marketed by developers, you can also buy property company shares.

There are many developers whose shares you can buy.

However, stocks have ups and downs in value, so if you are still a layman, it’s a good idea to learn about stocks first as an investment manager.

Make sure you read all the risks and prospects that exist in the stock before starting to buy the stock.

Another important thing you should know about stocks is that property stocks have prices that go up and down.

Therefore, it’s a good idea to invest in the long or medium-term so that you can get big profits.

Also Read: How to Invest in Real Estate: 5 Ways to Get Started

Property Bonds

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The next type of online property investment that you can participate in is property bonds.

Investing in property bonds is also very safe because the companies that issue them are generally part of the government.

When buying bonds, investors will get a fixed interest of 11.5% per year with interest paid every three months.

Real Estate Investment Fund

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Real Estate Investment Funds or DIREs are investments raised from public funds.

The funds are then managed and invested in various property assets, such as vacant land, buildings, houses, and other properties.

Abroad, these investments are known as REITs or Real Estate Investment Trusts.

DIRE requires to invest around 80% of its managed funds into the property sector with a minimum of 50% having to be in the form of direct property assets.

Investment firms such as DIRE are difficult to find because they are generally only marketed to institutional investors.

Asset-Backed Securities

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The securities issued by KIK or Collective Investment Contracts are one type of online property investment that you can participate in.

Asset-Backed Securities or EBAs have a form like bills that arise from commercial securities.

EBA is guaranteed by the government, so it is safe for you to follow.

One of the institutions that issue EBA is Sarana Multigriya Financial (SMF) which only offers EBA for institutional investors.

Crowdfunding

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Crowdfunding or joint ventures are one of the most common types of online property investment.

Doing crowdfunding is very easy, investors just need a partnership to buy property together with other people.

Make sure the company that manages this crowdfunding has official permission from the OJK before you start investing.

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Also Read: How to Invest in Real Estate With Little Money for Beginners

Those are the various types of 5 Ways To Invest In Real Estate Without Buying Property that you can follow.

Hopefully, this article is useful for you.

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