.... don't have all your eggs in one basket
Everyone knows not to invest all your hard-earned savings in just one fund. Many investors look to real estate as a safe harbor too for their funds. This market which also has ups and downs, can be a good long-term investment. Like stocks and shares, there are various ways to invest in Real Estate too.
Buying Rental Property
This produces monthly cash flow IF the combined monthly outgoings (mortgage, insurance, tax) is lower than the rental. Even if the property just 'washes its face' and covers the costs, there is the potential for increase in value which can outperform simple savings interest.
To ensure you buy the right price in the right market, the services of a really knowledgeable realtor is critical, but there is plenty of online information available today on rental websites and real estate sites that you can research before making a move.
Invest with others
This means if you have a smaller fund to invest, you can go as little as $500 and be a partial owner in real estate. There are companies that specialize in this market. You need to know that your funds are managed by another and there is likely to be costs involved, similar to fund managers handling stock portfolios.
Buying and improving and selling on - flipping
It is becoming harder to do this, as property values are now rising and there are fewer homes that are in distress, however, in upcoming neighborhoods, and with homes that have aged without improvements there are still possibilities, by simply updating the interior. However there are risks associated with this and you have to be a canny buyer, and either know your market well, try and choose a good realtor to offer advice. Profits may not be what they were say 5-6 years ago, however, there is still money to be made, with a lot of hard work. The more work you can do yourself the greater the profit. Some people use the home as a residence for up to 2 years to offset potential capital gains* fix it up and move on to their next property, thus avoiding a second or third mortgage.
Air BNB or renting out a portion of your home
Many homes in the older districts around Tampa/St Pete have garage property at the rear and have converted upper levels into mini apartments. Some folks with split plan ranch homes also rent out one half to others. It can be a full-time lease, or a roommate that helps pay the mortgage or for additional income, or a full time business with short term rentals, like Air BNB or other online rental platforms, and can provide income and potentially tax deductions *
Real Estate Investment Trusts
These fall somewhat into the stocks and bonds area - there are NYSE and NASDAQ quoted funds, and like all investments are subject to gains and falls, but they are a way to enter the real estate investment market without having to actively involve yourself, other than checking on their progress on the relevant website.
*always seek professional tax advice,