Putting all your eggs in one basket can lead to a total loss. Instead, diversifying your investments can help minimize your losses. Many people avoid investing in real estate thinking that it requires a lot of money. Though it’s not correct!
Real estate investment has been a stable, growth, tried & tested formula to create wealth, regular and massive income in both short- and long-term duration. It has many advantages over stocks, bonds, and mutual funds. It has a higher return due to its positive leverage and predictable cash flow.
This article will break down why real estate investment is and has been the go-to investment for building wealth and highlight some of the top reasons why you should invest in real estate.
Top Reasons Why Real Estate is One of the Best Investments:
Store of value
In the past, it has been observed that the real estate market has outperformed the goal in terms of a store of value and returns. Exceptions being the events post-2007, but even then, smart investors have picked up properties with a great discount. Real estate is one of the safest investments one can make, the reason being, properties’ value very rarely goes down, and even then, it’s only for a very short duration. So, one thing on which you can rest assured is that the value of your property is not going to be devalued as more buildings rise. So, if you want your value to be safe generations from now, invest in real estate.
Once you buy a second home and you take a bank loan for it, you get some tax rebate which ultimately helps you save more money, and saving money also leads to wealth accumulation.
Passive Income for Life
Real estate is the modern-day version of an oil rig in your backyard working 24/7 to make extra money for you. As Warren Buffett, one of the greatest investors of all time said, “If you don’t find a way to make money while you sleep, you will work for money until you die!”
Easy Access to Funding
If you are employed and have a good credit history, banks can provide you with a great deal on loans. It’s never been easier and cheaper than it’s today to have access to capital. Many public and private banks are offering interest rates when it comes to buying a home. You should learn about these programs and take advantage of them.
An Asset for you & your Future Generation
Real estate lasts for 100+ years and looks after a minimum of two generations. So, by investing in real estate you not only create an asset for yourself but also for your future generation. Having a real estate asset gives you the comfort of either flipping it for profit for the short-term or keeping the asset as a rental income coming in for very long-term.
Control Over Investment
Unlike stocks, real estate is different. You can always customize the upgrades that you make to increase the value of the home. However, just as important is finding the right balance between the returns and risk.
Real estate is one of the best investments that can provide high returns in the long term. Its steady cash flow helps minimize monthly expenses and enables people to save for retirement. Your cash flow will eventually increase as you pay off your mortgage. It can then be used to boost your retirement funds or even boost your wealth.
Multiple Ways of Investing
There are many ways to invest in real estates, such as direct ownership of houses and small multifamily properties, crowdfunding, and joint ventures, and publicly held real estate investment trusts (REITs).
An inflation hedge is a type of investment that prevents inflation. It is typically used to protect investors from a decrease in their buying power. This is why real estate investment is considered to be a hedge against inflation as the value of property gradually increases over time. So, investing in real estate will act as a shield for you against inflation.
Diversification in Portfolio
Another reason to invest in real estate is its diversification in the portfolio. Real estate has a low correlation with other major assets types. This means that it can lower down portfolio volatility and provide a higher return per unit of risk.
The Bottom Line
Real estate can help you reduce risk and boost your returns. It can also serve as a great way to preserve capital while enjoying the cash flow. It is a liquid asset that can be used to pay bills and make other financial goals and can be sold quickly and easily if you need to liquidate it.
So, what are you waiting for? Do your research properly, learn more about real estate investment and start your investment journey in one of the most reliable assets – Real Estate!
I suggest you do your research before investing in real estate and if you have any query you can mail me at firstname.lastname@example.org or call 9599705565