Real estate business doesn’t just mean buying and selling houses or land. There are many ways to do business in real estate, each with its own advantages and disadvantages. You must choose a real estate business method that aligns with your abilities, interests, and goals.
Some real estate business methods you can choose from include:
- Being a property owner: This means buying properties with the intention of renting them out or selling them at a higher price. You need a significant amount of capital to purchase properties and be prepared to bear the costs of maintenance, taxes, and the risk of damage or loss of tenants. The advantage of this method is that you can earn passive income from property rent and capital gain from property value appreciation.
- Being a property investor: This involves investing your capital in properties owned by others, either directly or indirectly. You can invest directly by joining developers, cooperatives, or property communities. Indirectly, you can invest by buying stocks, mutual funds, or other capital market instruments related to real estate. The benefit of this method is that you don’t have to manage the properties, and you can get attractive returns. However, you should be prepared for the risks of price fluctuations, project failures, or fraud.
- Being a property broker: This means acting as an intermediary between property sellers and buyers or property owners and tenants. You need good communication, negotiation, and marketing skills, as well as a wide network. You also need to stay updated on property market trends and be familiar with property prices, locations, and specifications. The advantage of this method is that you can earn a substantial commission from successful transactions. However, you have to compete with other brokers and deal with the possibility of transaction cancellations or client complaints.