As the frenzy of Black Friday and Cyber Monday fades, along with the temptation for impulse spending, it’s the perfect time to refocus on decisions that secure your financial future. If you’re looking for ways to build long-term wealth for yourself and your family, done right, real estate provides a powerful and reliable path to wealth creation. Whether you’re a homeowner with unused space, seeking an affordable and relatively low-risk entry point to investing in real estate or a savvy investor with a hefty budget looking to make large-scale investments, there is an opportunity for everyone. Here are three practical strategies to help you build wealth through real estate.

Rent Extra Space for Extra Income

For homeowners, your property is already an asset, so why not make it work harder for you? One of the simplest and most well-known approaches to earning an income through real estate is converting unused space into rental units. This strategy is all about unlocking the potential in the space you already own. You may have a guest room or space for an addition to your property that could be rented out to help pay the mortgage or generate a steady income stream. However, to get started, a little work may be necessary. The goal is to create an appealing and functional space for the tenant while increasing the value of your property, but you don’t need to go overboard. Basic improvements can often make a big difference. For example, adding a bathroom and partitioning the guest room from the rest of the property would give your prospective tenants added convenience and privacy and allow you to charge a higher rent. By capitalising on the space that you already own, you’re not only maximising your property’s utility but also taking a strategic step toward building long-term wealth.

Acquire, Fix, and Sell it: Investment ownership

While modifying your property for rent is a popular choice, the “Acquire, Fix, and Sell” strategy also offers excellent opportunities to generate wealth through real estate. This method involves buying properties that need work, renovating them, and selling them for a higher price. However, this strategy requires higher upfront costs, patience, a good eye for potential and the ability to manage renovations effectively. If you’re willing to roll up your sleeves, the first step is to find a property priced below market value or one in an excellent location that has significant upside potential. Older homes that just need cosmetic updates are prime candidates. If you’re unfamiliar with the local market, working with a real estate agent can help ensure you’re making sound decisions. Once you’ve identified a promising property, you’ll also need to identify what will need to be renovated and their estimated costs. Try to focus on updates that will add the most value, such as modernising kitchens and bathrooms, improving curb appeal or upgrading painting and flooring. Once you’ve tallied the property price and estimated costs of renovation, you’ll be able to assess the feasibility of your project. If the project is feasible and you decide to proceed, the next step is to get financing to help cover the costs. The Mortgage Unit at the National Commercial Bank Jamaica Limited offers tailored financing solutions designed to make property ownership accessible with competitive interest rates and flexible terms. By giving the property a facelift, you can significantly increase its desirability and market value, enabling you to make significant gains on the sale. Alternatively, you could keep the property and rent it out, generating a steady return on investment.

Invest in Real Estate Funds: An Affordable Alternative to Direct Ownership

If you lack sufficient funds or are unwilling to take on the responsibility of property ownership or managing tenants, investing in real estate funds offers a more passive way to build wealth. These Funds pool money from many investors to purchase and manage real estate properties, giving you a stake in the market, without having to buy the property directly. The NCB CAP Real Estate Fund offers a great entry point for investors with limited capital to invest in real estate. Under the “Season for More” promotion, potential investors can start with a minimum of J$20,000, which is approximately one per cent or less than the typical deposit to purchase a home. To learn more, text “WEALTH” to 876-613-9160 via WhatsApp.

Bottom Line

If you’re looking for ways to secure your financial future, real estate offers numerous avenues to build wealth. Options like renting out extra space, investing in a fixer-upper or investing in real estate funds provide investors with varying budgets, access to experts, and willingness to manage real estate directly. However, before diving in, it is advisable to research your options, understand your financial goals, and familiarise yourself with the potential risks. You can also speak to an NCB Capital Markets Limited wealth advisor or a qualified real estate professional if you need further guidance on available investment opportunities in Real Estate.

Kimberley Martin –Assistant VicePresident, Corporate Solutions, NCB Capital Markets Limited