Investing for beginners: Investing in real estate
Investing for beginners
Last time, we shared more information about bonds in our series “Investing for beginners”. What types of bonds are there, and why do people choose to invest in these bonds? You can read the entire article here.
Today we will focus on investing in real estate: what is it, and can you earn extra money with it?
Investing in real estate
You might know someone who invests in real estate and always thought it to be some big deal you don’t know anything about. Well: that’s about to change. Investing in real estate is often seen as an excellent way to build a passive income.
What it’s all about? Let’s dive in!
Investing in real estate is simpler than you might think: you invest money in real estate — land and associated buildings that are fixed to the ground, intending to achieve a return to earn more money than you originally invested.
Sounds simple enough, but how do you start investing in real estate?
This is how you invest in real estate.
You can invest in different types of real estate. Think of flats, houses, office spaces, shops and even hotels. The most significant difference between these forms is mainly the price range.
An average terraced house now costs between €250,000 and €300,000. If you have a lot of funds at your disposal, you can buy an extra flat or house and rent it to someone else. The rental income from this is your return. Unfortunately, this isn’t an option for everyone. So instead, you can also invest in existing buildings, such as office buildings. By doing so, you become a real estate investor. The rental income from that real estate is distributed among all property investors.
Advantages and disadvantages of investing in real estate
Like all other ways of investing, this form has its own advantages and disadvantages.
Advantages of investing in real estate: real estate will always exist, and there is always a demand for homes. In addition, it offers protection against inflation, and the return is often higher than other forms of investing. By investing in real estate, you can start a passive income stream for yourself and use this income to reinvest in other real estates, continuing to expand your real estate with more returns and more income.
Disadvantages of investing in real estate: you will often need to invest at least 20% of your own funds to purchase the real estate. Not everyone has this option. You also have to take all unforeseen costs and maintenance costs into account. Finally, you will have to ensure that your home is rented: no tenant means no income while the costs for maintenance and mortgage continue.
The BOTS app and real estate
It may be superfluous to mention that the BOTS app does not work with real estate and never will. The BOTS app currently focuses on investing in cryptocurrency (more trading options will come soon!): but we cut out the middle man. We’ve reinvented automated trading and put it out there for anyone to profit from. The BOTS app uses bots that do all the work for you. All you have to do is pick a bot, invest the funds, and be patient!
But how can you trust these bots? The bots in the BOTS app are developed by specialized developers and work through algorithms, artificial intelligence and machine learning. As a result, there is no more need for a (digital) fund manager. This means that you don’t have to pay for the costs of one, either.
The return that a bot achieves is significantly higher than the returns that a human might achieve. Why? A bot doesn’t eat, sleep, take pee breaks or gets stressed out when the market dips. This means that a bot can respond to changes in your crypto fund right away: no matter the hour.
And there you have it, in a nutshell: how we made investing with higher returns available for everyone. All you need to get started is 2 minutes and €5.
Ready to get started?
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.