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Posted on 05/20/2020 in Business

5 Possible Ways of Investing in Real Estate in Jamaica


5 Possible Ways of Investing in Real Estate in Jamaica

Making Money in Real Estate in Jamaica

The real estate business in Jamaica is expanding at a rapid pace. This is because many investors have come to realize the lucrative market open to them. The economy is expanding so it is only logical to realize the need for more real estate. 

Because we all go into any kind of business venture to make a profit, it is fair to say, real estate whether going into it traditionally or non-traditionally, the result is the same. Residual income has been a great way to ensure a stream of income that you can depend on, and this is it.

Categories of Real Estate Investment

Your own home though it is a piece of real estate unless it is generating an income is just a place of residence. Should you choose to convert any part of that structure to earn, you have ventured into real estate income generation.

Property rental has always been a very lucrative means of income. This form of cash flow is as solid as you can get because even when the economy is at a low, property values are always moving upwards to match or even exceed the rate of inflation. You may even venture into an apartment rental, office rental, and should you be the owners of such properties, your income will be a steady flow. I say should you be the owner of these properties, as some persons build these pieces of real estate and hire property managers to oversee the care and rentals.

Capital real estate venture is the owner having an undeveloped property that appreciates based on the surrounding developments. There is also having a developed property and there has been some form of improvement on the structure, which drives the price up. Some persons venture in “House Flipping” as a means of generating income. This is also a form of real estate venturing

House Flipping may be a new category of real estate ventures in Jamaica, but it has been around for years in the United States and Canada. This is when persons buy a house that may be rundown or is a fixer-upper and renovate it. Depending on the purchase added to the cost of renovation it is then sold for more than the combined amount spent, thus making a profit. This is house flipping. Many persons have ventured into this form of real estate investment and find it very lucrative. You just have to be considering where you acquire the property, and what your budget is. 

Major Commercial Real Estate Investments

Venturing into big property developments by purchasing stocks, going into a venture with a real estate developer, is some huge form of investment. This venture is called REIT or real estate investment trust. This form of investment enables the investor to eliminate the cost of direct ownership of any property while benefiting from residual income. You will be co-owners of many properties whether commercial or residential. The many slices of the pies enable your income generation to be astronomical.

It is Daunting to Venture into real estate in Jamaica? 

This may be the question you are asking. Like any business venture, there are always risks. However, the Jamaican Government, as well as the Bank of Jamaica, has put in place some policies to make it more affordable for the average person to own real estate. This comes in the form of lower interest rates, and property tax cuts that make the cost of buying and selling properties easier. Wanting a loan to buy a property is also more affordable, based on the percentage interest rate policies brought about by the Bank of Jamaica.

 




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