How new forms of property investing can help you retire early | Personal Finance | Finance
Online real estate investment platforms aim to provide opportunities for people to invest in real estate and generate potential returns that surpass traditional mutual funds.
Jatin Ondhia, Co-Founder and CEO of Shojin Property Partners, said Express.de The aim of these platforms is to make real estate investments “accessible, easy and affordable”.
Regarding the historically lucrative buy-to-lets investments, Mr. Ondhia said, “One of the traditional ways to [early retirement] – Real estate investments and landlords – was somewhat restricted.
“The concept of early retirement is getting further out of reach.”
“[This is because] Constantly falling tax breaks and rental yields for landlords as well as the recent drop in rental prices due to the pandemic have contributed to a decline in the value of the rental portfolios.
“But that doesn’t mean that income from real estate is no longer a lucrative investment opportunity for early retirement.”
The online real estate investment industry, which Mr Ondhia calls “digital disruption,” is projected to grow from around £ 10 billion today to nearly £ 600 billion by 2027.
Investing in real estate has so far been out of the question for most Britons due to the high barriers to entry.
Mr. Ondhia said, “They have made excessive returns while professionals have focused on equity funds with comparatively lower returns.”
Investing in real estate often requires hundreds of thousands of pounds of reserve capital.
It doesn’t even take into account the cost of solid financial advice or the time that is inevitably put into such an endeavor.
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But the current requirement to invest in real estate online is only £ 5,000.
No investment is ever 100 percent secure, as two “one-off” financial crashes in the past decade and a half have shown.
However, real estate is seen as a particularly useful asset class, especially for those looking for diversification. This is because real estate is largely decoupled from the stock market and is therefore relatively shielded from market fluctuations.
At the very least, real estate is less exposed to market fluctuations than other forms of investment.
Far from being an insignificant piece of money, however, it makes real estate investment accessible to far more people than it was previously available to.
It may pique the interest of many to know that this is an option now available to them, especially given the rate of return it can offer.
Mr. Ondhia said, “This opens up greater investment opportunities for individuals and can help people retire sooner.”
He added, “Real estate is the world’s largest alternative investment sector and it is also very lucrative. When you choose a well-diversified real estate-backed portfolio to invest in, you can be sure that your money will work hard while you move on with your other plans. “
When money is invested in these online platforms, the capital is pooled with the capital of other investors.
It invests in a mix of residential real estate, real estate, apartments and almost all other types of property.
For many, a different source of income in retirement can make a huge difference to their lifestyle, and for many who want to retire early but don’t have the money to invest in real estate, this might be just what they need.
“Ultimately, the goal is to keep your savings working hard and generate passive income, both before and during early retirement, so you can maintain income levels while you pursue your passions.”
In addition, a diversified portfolio is vital for any seasoned investor, and this is what these platforms can offer investors too.
Mr Ondhia also said it can be difficult to access real estate deals directly, so platforms like this help in that way too.
He said it also gives reassurance to investors “who can invest with the convenience that someone who is consistent with you has already done all of the due diligence”.