11 Best Ways to Make Money on Property
Real estate investment continues to be a cornerstone of wealth-building worldwide. In the United States, approximately 10.6 million Americans (7% of tax filers) generated income from investment properties in 2023. The UK shows similar enthusiasm, with 2.81 million individuals reporting rental income in the 2022-2023 tax year. In Germany, where 52% of the population rents, private landlords own about 14 million rental dwellings, which represents over 60% of the rental market.
Meanwhile, the Asia-Pacific region shows significant property investment activity. In Singapore, 72% of residents plan to purchase property within the next two years. Indonesia reports high homeownership rates, with 79% of urban households and 92% of rural households owning their homes, among the highest in Southeast Asia. Australia leads with 2.2 million Australians (21% of taxpayers) owning additional residential properties beyond their primary residence.
In this guide, we'll explain real estate investing and explore 11 different ways to invest in property. We'll compare these methods by income yield, overall returns, risk level, and required budget.
What is Real Estate Investing?
Real estate investing means purchasing or funding property to earn a return. This encompasses purchasing land, residential buildings, commercial structures, or industrial facilities that can produce income through rent collection or an increase in value over time.
Unlike many other investments, real estate offers two unique advantages:
- Being a physical asset, you can see and touch
- Generating income and providing long-term appreciation by relying on the simple business model of rent
The history of real estate as an investment vehicle stretches back centuries, evolving from agricultural land ownership by the nobility. Before modern financial markets developed, property was one of the few reliable ways to build and preserve wealth. This historical reliability continues to attract investors worldwide – surveys show approximately 36% of Americans consider property the best long-term investment option.
Now, property investment comes in multiple forms, ranging from direct ownership where investors become landlords to indirect methods through various financial instruments.
But the three primary wealth-building mechanisms in real estate are:
- Rental income (steady cash flow from tenants)
- Capital appreciation (increase in property value over time)
- Leverage (using mortgage financing to control valuable assets with a fraction of their total cost)
11 Ways to Invest in Property
1. Renting a Property
Did you know that: According to the U.S. Census Bureau, individual investors own approximately 72% of all rental properties in the United States.
Buy a property and rent it out to tenants – the most classic route to property investment. As a landlord, you have considerable control over your investment – you choose the property, vet tenants, and decide on maintenance or upgrades. However, it comes with significant responsibilities and risks. You must manage the property (or hire a property manager), maintain the premises, handle repairs, ensure housing laws comply, and deal with tenant issues. There can be periods of vacancy with no rental income but ongoing costs, and occasionally, tenants may cause damage or payment problems.
Before investing, it's crucial to calculate the net yield (rent minus all costs) to determine profitability. Many investors favor direct landlording because it's tangible and property values in many markets tend to rise over the long run, building equity.
- Typical entry costs: $20,000-$100,000+ (down payment of 20-25% on a property)
- Expected returns: 4-10% annual yield (rental income minus expenses)
- Risk level: Low to medium
- Time commitment: High (property management, tenant relations, maintenance)
- Liquidity factor: Low (property can take months to sell)
👉 Learn more about becoming a landlord in our guide.
2. Property Development (Off-plan Properties)
Did you know that: According to the 2023 Survey of Construction (SOC), the average time to complete a multifamily building after obtaining authorization was 19.9 months in 2023.
Off-plan property investment means purchasing a property before it is fully built, based only on architectural plans or a show model. Developers typically offer early buyers discounted prices or favorable payment plans to secure project funding. As construction progresses and the project nears completion, the property's value rises, and investors may seek investment exit to take a profit.
This strategy requires careful research: you must trust the developer's reputation (actually to complete the project) and gauge market demand for the completed units. The risks include construction delays, market downturns during the building period, or changes in the developer's financial stability. Off-plan investors might also decide to hold the property after completion and rent it out, banking on the fact that brand-new properties can command premium rents.
- Typical entry costs: $10,000-$50,000+ (initial deposit, with staged payments)
- Expected returns: 20-75% (total return over development period of 1-5 years)
- Risk level: Medium to high
- Time commitment: Low to medium (research upfront, monitoring progress)
- Liquidity factor: Very low until completion (difficult to sell during construction)
👉 Learn more about off-plan property investment in our guide.
3. House Flipping – Buying a New Build to Sell On
Did you know that: The average time from purchase to resale increased to 178 days in the first quarter of 2023 but decreased to 164 days in the first quarter of 2024.
This strategy, often called "buy-to-sell" or property flipping, means purchasing a newly built property to sell it for profit immediately. Unlike off-plan investing, you typically buy as soon as the property is completed and then quickly resell it once it has shown rental demand.
Developers frequently sell the first batch of new homes at slightly lower prices to generate momentum, and once the development gains popularity, later sales can command premium prices. Flipping can yield quick returns in a rising market, but carries risks: if market conditions soften or many similar units flood the market, you may struggle to sell at a profit. Transaction costs like agent fees and taxes can significantly reduce your margin.
- Typical entry costs: $100,000-$300,000+ (full purchase price)
- Expected returns: 5-35% (over 2-9 months)
- Risk level: High
- Time commitment: Medium (research, purchase process, marketing for resale)
- Liquidity factor: Medium (depends entirely on market conditions)
4. Real Estate Investment Trusts (REITs)
Did you know that: REITs own over $4.5 trillion in gross real estate assets and more than 535,000 properties globally.
A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-producing real estate and allows investors to buy shares in that company. By investing in REITs, you can earn a portion of the rental income and property profits without directly owning or managing property yourself.
In many jurisdictions, REITs are required by law to pay out most of their income as dividends (U.S. REITs must distribute at least 90% of taxable income to shareholders). REITs can be publicly traded (bought and sold like stocks) or private, and they may specialize in specific property sectors, such as residential apartments, office buildings, shopping malls, healthcare facilities, or data centers, or maintain a diversified portfolio across different property types.
- Typical entry costs: $10-$100+ (the price of a single share)
- Expected returns: 4-8% (annual dividend yield plus potential appreciation)
- Risk level: Low
- Time commitment: Very low (passive investment)
- Liquidity factor: High for publicly traded REITs (can sell shares instantly)
👉 Learn more about REITs in our guide.
5. Real Estate Funds
Did you know that: Real estate funds can leverage aggregated capital to invest in more extensive portfolios. For example, a fund with $1.5 million in equity can invest $6 million worth of real estate using a 75% loan-to-value ratio.
Real estate funds are professionally managed investment vehicles that pool capital from multiple investors to purchase, develop, and manage a diversified portfolio of real estate assets. Unlike REITs, which own real estate directly, real estate funds are investment structures that can take various forms, including mutual funds, private equity funds, and hedge funds focused on real estate.
These funds often employ sector-focused strategies, allocating capital to specific property types to capitalize on market trends or economic conditions. Some funds specialize entirely in niche sectors like senior housing, student accommodation, self-storage, or data centers. These funds can allow investors to leverage sector-specific market plays. For instance, funds with higher allocations to industrial and multifamily assets typically outperformed those heavily invested in office and retail properties during the post-pandemic period.
- Typical entry costs: $10-$100+ (the price of a single share)
- Expected returns: 3-7% (annual dividend yield plus potential capital growth)
- Risk level: Low
- Time commitment: Very low (passive investment)
- Liquidity factor: High (traded on exchanges)
6. Property Unit Trusts (United Kingdom)
Did you know that: The UK Property Unit Trust industry revenue declined at a compound annual growth rate (CAGR) of 9.8% over the past five years, reaching an estimated £316.7 million in 2024.
A property unit trust is a pooled investment fund where investors' money is collectively used to purchase a portfolio of real estate assets. It is structured as a trust (common in the UK and others). It is open-ended, meaning it can issue new units when investors contribute money and redeem existing units when investors withdraw.
Unlike REITs, companies with shares traded on exchanges, property unit trusts price their units based on the Net Asset Value (NAV) of the underlying properties, typically calculated daily. These trusts primarily invest in commercial real estate such as office buildings, retail parks, industrial warehouses, and sometimes residential property. The unit price fluctuates based on the appraised values of the underlying properties and the rental income they generate.
- Typical entry costs: $500-$50,000 (minimum investment varies widely)
- Expected returns: 4-8% (income and capital growth)
- Risk level: Medium
- Time commitment: Very low (passive investment)
- Liquidity factor: Medium to low (can become illiquid in market downturns)
7. Real Estate Tokenization Platforms
Did you know that: The tokenized assets market is projected to grow from today's $20 billion (excluding stablecoins) to between $3.5 trillion and $10 trillion by 2030.
Real estate tokenization platforms use blockchain technology to convert real estate ownership into digital tokens that represent a fractional share of a property. These platforms break down large real estate assets into smaller, more accessible investment units, allowing investors to own portions of various properties and get proportional income. On secondary markets, investors can sell their tokens to others.
The typical tokenization framework involves creating a special-purpose vehicle (usually an LLC) that legally owns the property and issuing digital tokens representing ownership shares in that entity. When investors purchase property tokens, they become legal co-owners of the company that owns the real estate. The day-to-day operations of tokenized properties are typically handled by professional management companies that find tenants, maintain the properties, and collect rental payments. Smart contracts then automatically distribute this rental income to token holders based on their ownership percentage.
For example, platforms like Binaryx utilize Wyoming's 2021 DAO LLC legislation (W.S. SF0038) to create dedicated LLCs for each property. These LLCs operate as Decentralized Autonomous Organizations (DAOs), giving token holders voting rights proportional to their ownership stake. This structure allows investors to participate in key decisions such as changing property management companies or deciding when to sell the property. Learn more about how it works in this article.
- Typical entry costs: $50 (minimum investment)
- Expected returns: 12-23% annually, with higher returns possible for off-plan (construction) investments due to value appreciation upon completion.
- Risk level: Medium to high
- Time commitment: Low (passive investment with optional voting participation.
- Liquidity factor: Medium (depends on secondary market activity)
👉 Learn more about how tokenization works.
8. Property Open-ended Investment Companies (OEICs)
Did you know that: Property OEICs in the UK predominantly focus on commercial real estate, with portfolios concentrated in office spaces, retail properties, and industrial facilities
An Open-Ended Investment Company (OEIC) is a type of investment fund primarily used in the UK that pools investors' money to purchase a diversified portfolio of assets. Property OEICs specifically invest in real estate assets, with prices based on the underlying properties' net asset value (NAV). Unlike unit trusts with dual pricing, OEICs feature a single daily price.
Property OEICs are structured as companies and regulated by the Financial Conduct Authority (FCA). British OEICs are comparable to American mutual funds, and many U.S. investment companies that do business in the U.K. offer them. However, OEIC shares do not trade on the London Stock Exchange. Though they're called "open-ended," they sometimes restrict withdrawals during market downturns when selling properties quickly becomes challenging.
- Typical entry costs: $500-$5,000 (minimum investment)
- Expected returns: 3-7% annually (income and potential capital appreciation)
- Risk level: Low to medium
- Time commitment: Very low (passive investment)
- Liquidity factor: Medium (can become illiquid during market stress)
9. Property Bonds and Loan Notes
Did you know that: In the UK market, property bonds and loan notes often outperform traditional fixed-income investments with 5-10% APR against 1-4%.
Property bonds and loan notes are fixed-income investments that allow investors to lend money directly to real estate developers or other property companies. Developers issue these debt instruments to raise capital for specific projects from private investors. Investors receive regular interest payments (quarterly or annually) or a lump sum at maturity.
When you invest in a property bond, you become a lender for a set term, typically 2-5 years. Property loan notes function similarly but are usually shorter-term instruments used for specific phases of development projects. These investments are often asset-backed, which is secured against the underlying property or land. Most property bonds and loan notes are not traded on exchanges, meaning your money is locked in for the full term.
- Typical entry costs: $10,000-$100,000 (minimum investment)
- Expected returns: 5-10% fixed annual interest
- Risk level: Medium to high
- Time commitment: Very low (passive investment)
- Liquidity factor: Very low (typically held until maturity)
10. Real Estate Crowdfunding, Crowdlending, Crowdinvesting
Did you know that: Crowdfunding originally emerged during the 2008 financial crisis, when banking credits became too difficult for small businesses to access.
Originally, crowdfunding wasn't about financial returns but supporting projects for tangible results. But today, real estate crowdfunding platforms enable investors to participate in property projects with small amounts of capital through online marketplaces. These platforms connect property developers or owners needing funds with investors looking for real estate exposure.
The crowdfunding space offers several investment models. With crowdlending (P2P lending), you lend money to property developers and earn fixed-interest payments, typically secured against the property. Crowdinvesting provides actual ownership stakes in properties, generating returns through both rental income and property appreciation when assets are eventually sold.
The primary advantages include low minimum investments (often starting at just $50-100), professional management of the assets, and access to commercial-grade properties that would otherwise be out of reach for individual investors. However, these investments typically come with limited liquidity until project completion, and while platforms perform due diligence, investment outcomes ultimately depend on project success and market conditions.
- Typical entry costs: $50-$5,000 (minimum investment)
- Expected returns: 8-15% (varies by model and risk level)
- Risk level: Medium to high
- Time commitment: Very low (passive investment)
- Liquidity factor: Low (typically held until project completion)
👉 Learn more about real estate crowdfunding options in our guide.
11. Shares in Listed Property Companies
Unlike REITs or property funds, these are operational businesses whose core activities revolve around real estate. The category includes homebuilders, commercial property developers, hotel chains, self-storage operators, and construction firms—any company that owns, develops, or manages property as its primary business model. When you purchase stock in these companies, you become a partial owner and get stock price appreciation and sometimes dividends..
This investment approach requires evaluating property market trends and company-specific factors like management quality, debt levels, and growth strategy. Broader market conditions, interest rates, and company performance will influence the stock price. Generally, investing in individual property companies carries more risk than diversified REITs or property funds, as company-specific issues can significantly impact your investment.
- Typical entry costs: $10-$1,000+ (price of shares)
- Expected returns: 5-15% (capital growth plus potential dividends)
- Risk level: Medium to high
- Time commitment: Low (occasional research and monitoring)
- Liquidity factor: Very high (can sell shares during market hours)
About Binaryx
Binaryx is a real estate tokenization platform that operates under Wyoming’s 2021 law (W.S. SF0038), turning real estate properties into digital tokens. For each property, Binaryx creates a dedicated LLC in Wyoming that issues tokens on the blockchain. When you buy these tokens, you become a co-owner of the LLC that owns the property, with all ownership rights protected by state law.
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