Real estate has become a very common word in the investment industry. Purchasing real estate is now more than just finding and calling a place home. Investing in real estate is rapidly growing and becoming increasingly popular over the past few years. With many people investing in real estate has become a common investment medium. For some people investing in real estate may possibly seem like an enormous risk.

However, many people today are looking at the real estate market and are wondering how to invest in property. Real estate market has plenty of opportunities for making huge profits. However, owing and buying properties is a lot more complicated and complex than investing in bonds and stocks.

However, for many who wants to know how to invest in property knows that with proper care and planning, these real estate investments can become useful and valuable assets that will bring in huge returns or become a steady source of income. Investment properties are now an essential part of a diversified portfolio.

Investment in property now goes beyond just buying a home. There are several ways in which one can invest in real estate. Property investing has many methods and each method has its own different benefits and disadvantages. Few of property investment methods are the basic rental properties, real estate investment group, real estate trading, REITs (real estate investment trust) and many more other ways.

• Basic rental properties – this is an old investment practice. In this type of investment, the person will purchase the property and rent it out to other people (tenants). The landlord or the owner is responsible for paying the property taxes, mortgages, the cost of maintain the property and any repairs of the property. Usually, the landlord who is renting out the property charges an amount that will cover all the above costs and earn him a monthly profit. Also, the property owned by the landlord will appreciate in value and this asset will be more valuable to the owner.

• Real estate investment group – this type of investment is where the real estate investment group will have small mutual funds for properties that are rented. A real estate investment group is where you can own a rental property but you won’t have the hassle of being a landlord. This is usually done, when a company builds or buy a set of condos or apartment blocks and then let the investors to purchase these properties through their company, thus making it an investment group.

• Real estate trading – this real estate investment type is bit on the wild side. Here the real estate trader buys properties and hold it for three to four months with the intention of selling it back for a profit.