From time immemorial, owning real estate has been associated with status, wealth and credibility. Along with gold, it was the safest way of securing one’s wealth.
As we stepped into the modern era, a lot of other investment options developed. Options like stocks, bonds, fixed deposits, mutual funds digital or crypto currency gave investors multiple options of parking their money.
But out of all of these, Real Estate still remains one of the most secure and beneficiary avenues for a long term, profitable form of investment.
Real estate is a necessity since everyone needs a place to reside, and the investment in real estate solves this problem and secures the future. This article aims to discuss and examine Real Estate benefits, how and why it is considered a good investment.
Read also: WHY IS BUYING PROPERTY A GOOD INVESTMENT
Real estate investment is one of the most robust investment options, especially in the long run. This why you should take advantage of this robust investment option and invest in real estate.
1. Its as Safe as Houses
“Safe as houses” is a popular slang in real estate that basically means real estate investments are perfectly safe because of the paying character of house property as an investment.
Property value tends to increase without the volatility of the share market which makes it an all-round safer investment. When you factor in the return and risk associated with buying property and shares, property is considered a far safer investment.
2. Appreciation of Value
Real estate values always increase over time. With a good investment, one can turn an enormous profit when it’s time to sell. Rents also tend to increase with time, leading to higher cash flow. It is historically evident the longer you hold onto your real estate, the more money you will make.
The housing market always recovers from bubbles and crises that cause home appreciation to slip. Following even the most uncertain times, prices always return to normal, and appreciation is back on track.
In other modes of investment, like the stock market, the risk of loss is omnipresent, but real estate offers increased control over one’s investment. Property being a tangible asset can be leveraged to capitalize on numerous revenue streams while enjoying capital appreciation.
3. Its a Remarkable Flexible Investment
With property, regardless of your financial aims you are mostly able to find an investment strategy that works for you.
There’s the long-term capital growth strategy where in the long-term the property purchased delivers capital gain (provided the right area with correct supply/demand ratio and demographics is selected).
Then, there’s the positive cash flow strategy where you can rent out the property for cash flow. There’s also the adding value strategy where you can renovate, subdivide or even alter the use of an existing property to develop, create or increase the value of the property.
A very significant benefit of Real estate investment is the ability to use Leverage by investing just a small portion of one’s own money and borrowing the rest of the money to buy a property.
If you come up with a down payment from your savings and acquire a housing loan to cover the rest of the cost of the property, you can invest in prime real estate for as little as 15 % of the total purchase price. This means only a tiny fraction of your own money is invested in the property, but you still get to be the owner of the property.
It also ensures you don’t put the entirety of your life earnings in Real Estate and save some for the possibility of emergencies.
5. Full Control
For property investments, once you’re done paying for the property and settling legal requirements, you directly own the asset and have virtually complete control over it.
You can directly influence the asset worth (by adding value to it) and cash flow (e.g. by raising rent).
6. Tangible Asset
Property being a tangible asset can be leveraged to capitalize on numerous revenue streams while enjoying capital appreciation.
The high tangible asset value ensures everlasting security as there will always be value in Real Estate, unlike other investments such as stocks with low or no tangible value.
Real estate is easy to purchase, convenient to finance, gives tax advantages, improves your lifestyle and is devoid of any insurmountable financial barriers.
Hence, Real Estate, even today, remains one of the most advantageous investment options.
7. There’s an Investment for Every Budget
If you do some research you’ll see various offers from realtors and real estate firms offering affordable entry points for real estate investment.
The only thing required is for your income flow to be stable enough to support payments in installments till you fully own the property.
If you buy smartly, you can even expect equivalent or better growth on these affordable assets than more expensive assets.
A Few Years from Now You’ll Wish You Did
Investments typically take time before they yield large returns. This is why if you start today and invest smartly, you will be patting yourself on the back a couple of years from now for a job well done.
To be honest, we are at a point where real estate investments just make sense. For more information on how to you can start investing in real estate now, call us today: 678.439.6013