Real estate has long been one of the most reliable paths to building wealth. It offers a tangible, income-producing asset that tends to appreciate over time, provides cash flow, and even acts as a hedge against inflation. But for many people just starting their financial journey, the idea of investing in real estate can seem out of reach, especially with rising property prices and the complexities of the traditional housing market.
The reality is that getting started in real estate today is far more accessible than ever before. Thanks to technology and modern investing platforms, you no longer need to buy a whole house or manage a rental yourself to benefit from real estate. Whether you’re working with a few hundred euros or considering buying your first property, there are practical, beginner-friendly ways to start building wealth through real estate without needing deep pockets or experience.
Why Real Estate Is Still Worth It
Real estate continues to be a solid investment for several reasons. Unlike volatile assets like stocks or cryptocurrencies, real estate provides a certain level of stability. It generates income through rent and typically increases in value over time. Plus, when you own property, you have the ability to leverage, meaning you can borrow money to increase your potential return, something you can’t do as easily with other types of investments.
There are also significant tax advantages available to property owners, including deductions for mortgage interest, depreciation, and repair costs. For those looking to diversify their portfolio with something more grounded than tech stocks, real estate remains a compelling option.
Understanding the Basics
Before diving into specific strategies, it’s essential to understand what real estate investing actually involves. At its core, real estate investing means putting money into property with the goal of earning a return. That return can come from rental income, value appreciation, or both.
Traditionally, this meant buying a property, renting it out, and managing it yourself. But that model has evolved. Today, you can also invest indirectly through platforms that let you own shares or digital fractions of real estate without the responsibilities of being a landlord.
The best part? You can now tailor your approach based on your lifestyle, budget, and appetite for risk.
Modern Ways to Start Investing in Real Estate
One of the easiest entry points is through Real Estate Investment Trusts, or REITs. These are companies that own and operate income-generating real estate, such as apartment buildings, office spaces, or shopping centers. REITs are publicly traded, so you can buy shares through a regular brokerage account, just like a stock. It’s a hands-off, affordable way to gain exposure to the real estate market and earn regular dividend income without owning any property directly.
Another popular route is real estate crowdfunding. Platforms like Ovolus allow you to invest in real estate development projects with a relatively small amount of capital, sometimes as little as €500. These platforms pool funds from multiple investors to buy into larger commercial or residential projects. While they do come with some risks, crowdfunding makes it possible to diversify your investments across multiple properties and locations without a huge upfront cost.
Then there’s fractional ownership, often powered by blockchain technology. This is one of the newest developments in the real estate space. Tokenized real estate platforms let you buy a digital share in a real property, entitling you to a portion of the rental income or capital gains. It’s fast, global, and completely digital, perfect for investors who are already comfortable with fintech and crypto.
Of course, if you’re more interested in hands-on property ownership, there’s always the classic route: buying a rental property. For beginners, one smart way to start is through house hacking, buying a multi-unit property, living in one unit, and renting out the others. This allows you to cover your mortgage while building equity and gaining real-world landlord experience. While this strategy typically requires a higher upfront investment and a good understanding of local rental laws, it’s one of the most effective ways to start building a real estate portfolio from scratch.
Choosing the Right Approach
The best real estate strategy depends on your financial situation, lifestyle, and personal goals. If you’re looking for something passive and low-risk, REITs or crowdfunding platforms might be your best bet. They’re simple to use, require minimal time commitment, and offer reasonable returns with lower volatility.
If you have more capital available and are willing to take on some responsibility, buying a rental property or trying house hacking can provide higher returns and greater control. However, you’ll also be taking on the role of a landlord, which means managing tenants, repairs, and property upkeep.
And if you’re tech-savvy and comfortable navigating newer financial products, fractional ownership through tokenized real estate may appeal to you. While this space is still maturing, it offers a way to build a globally diversified property portfolio with very little capital.
What to Know Before You Invest
Regardless of the strategy you choose, it’s important to do your homework. Start by understanding your local market (or the market your platform of choice invests in). Look at key metrics like rental demand, job growth, vacancy rates, and property taxes. If you’re investing abroad or digitally, make sure the platform is transparent about its due diligence process and offers regular performance updates.
Financial literacy also plays a big role. Learn how to calculate your potential return on investment (ROI) and the Internal Rate of Return (IRR), net operating income (NOI), and cap rate. If you’re investing in a rental property, factor in all costs, not just the mortgage, but also maintenance, property management, and unexpected repairs. Being overly optimistic about returns and underestimating expenses is one of the most common mistakes new investors make.
Taking the First Step
If real estate investing is something you’ve been considering, the most important thing is simply to start. Begin by setting a clear goal: do you want monthly cash flow, long-term appreciation, or a mix of both? Once you know what you’re aiming for, decide how much you’re comfortable investing and how involved you want to be.
From there, open an account with a trusted REIT platform or crowdfunding site and make your first investment, even if it’s just a small amount. Track your performance, learn from the process, and gradually scale up. As you gain confidence, you might decide to explore more advanced strategies or move toward owning property directly.
Invest with confidence in real estate
Discover our real estate investing opportunities designed to deliver long-term growth and stability. For a clear overview of our investment process, visit how it works, and explore our FAQ for answers to the most common investor questions. With transparency at every step, we aim to provide the knowledge and confidence you need to make strategic investment decisions.
FAQs
- Why does real estate remain a strong investment in 2025?
Real estate is a strong wealth-building asset because it offers rental income, long-term appreciation, cash flow, tax benefits (like deductions for mortgage interest and depreciation), and acts as a hedge against inflation.
- What are the most passive ways for a beginner to invest in real estate?
The most passive, hands-off entry points are Real Estate Investment Trusts (REITs), real estate crowdfunding platforms (like Ovolus), and tokenized (fractional) real estate.
- What is “tokenized” or “fractional” real estate?
This is a modern development, often powered by blockchain, that allows investors to buy a digital share in a real property. It entitles them to a portion of the rental income or capital gains without needing to be a landlord.
- What is the “house hacking” strategy?
House hacking is a hands-on strategy where an investor buys a multi-unit property, lives in one unit, and rents out the others. This helps offset the cost of the mortgage while building equity faster.
- What is the most common mistake new real estate investors make?
The most common mistake is being overly optimistic about potential returns and underestimating expenses. New investors must factor in all costs, including maintenance, property management, and unexpected repairs, not just the mortgage.
