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Everyone knows that investing wisely is a great way to give your future self a leg up. For some people, though, getting started can be overwhelming and intimidating.

Do you start with stocks? Do you start with gold or silver? What about investing in property?

Many people don’t consider the benefits of investing in real estate until the market is already in a bad spot for investors.

If you want to be ahead of the curve, don’t miss out on what could be a lifechanging opportunity for you. Keep reading to learn 5 reasons that you may want to invest in real estate.

1. Inflation and Appreciation

While the stock market ebbs and flows, the housing market tends to rise steadily. There are crashes, naturally, but rent overall isn’t getting any cheaper. This means that investing in real estate is hedging you against inflation.

Nothing is foolproof, and during times of crisis, you may end up with a need to drop your rent. Typically speaking, though, that will be a temporary drop in price (and if you’re truly invested, you can find ways to make your investment appealing enough to tenants to be worth the extra money).

2. Portfolio Diversity

Maybe you’re already invested in the stock market and you’re thinking that you don’t need to invest elsewhere.

Well, recently there was a bit of a dip in stocks. Rentals, however, seem to be holding their ground. People will always need somewhere to live, which is one of the biggest benefits of investing in real estate.

Keep your stocks and precious metals, but continue to diversify with property investments.

3. Steady Hands-Free Income

Okay, not totally hands-free, but the income will come in while you’re doing other work and going about your daily tasks.

Every month your tenants will pay you. This won’t change! You’ll be paying your mortgages and your various bills and upkeep for your properties with this money, but some of it will be income.

As long as you stay on top of regular maintenance, your expenditures should be fairly low and anticipated and you should be making a healthy side income.

4. Financial Security

Owning something significant, like a rental property, can give the owner a feeling of security that other investments can’t.

In times of crisis, you will likely still have tenants contributing to your income. If you find yourself in real trouble, you are able (if you must) to sell your investment, likely for more than you bought it for so long as you’ve been maintaining it and receiving good reviews from your tenants.

This is something that can protect you against unplanned hardship.

5. You Can Provide a Home for Others or Create Your Dream Space

You have many choices when you’re investing in property. Do you want to focus on affordable housing that provides a home for people in more difficult financial positions? Do you want to make the luxury apartment building of your dreams?

This is up to you. Whatever you may have wanted from your landlord when you were renting, you can make that happen now.

Do the Benefits of Investing in Real Estate Appeal to You?

Investing is always a risk and it comes with commitments, but the benefits of investing in real estate far outweigh the drawbacks.

Now is a great time to get started in your investment journey. For more information, contact us.

Real estate is renowned for being one of the best ways to exponentially grow your wealth. This is especially true if you purchase multiple properties over a long time.

There are ways to invest in real estate other than buying a home, but not everyone is sure how to go about it.

Not sure where to start? Don’t worry, we’ve got you covered.

Let’s take a look at everything you need to know about real estate investing for beginners.

1. Rental Properties

One of the most efficient ways to make money in the real estate industry is to invest in rental properties. As the name suggests, this involves buying a house, building, etc. and intending to rent it out to tenants.

While you’ll have to screen tenants who apply and you’ll be responsible for handling most issues with the property, this endeavor could provide you with a sizable amount of passive income each month (often more than enough to cover the mortgage).

2. Online Platforms

If you wish to be only loosely involved in real estate, using an online investment platform is likely the choice for you.

Online real estate platforms serve to connect investors with borrowers who need money for their real estate purchases. Since you’re technically contributing to the purchase of a property, you’re entitled to a portion of the residual income that the buyer obtains.

This is a particularly noteworthy option for those who have a significant amount of money to put down initially, as a higher contribution will equate to a higher return.

3. Flip Houses

The premise is simple—you purchase a house and then sell it at a later date for a higher amount than you paid for it.

In general, there are two ways to go about this:

You renovate the home to add to its value
You wait for the local market to favor sellers so that you can list it at a higher price

This method involves a lot of patience (and extra money for additions/repairs to the home), but it can be one of the most lucrative.

4. Real Estate Investment Trusts

For those who are unfamiliar with real estate investment trusts (REITs), it functions similarly to buying stocks in the stock market.

The money you invest in a REIT is set up to invest in different areas of the real estate industry. These include bonds, stocks, and mortgage instruments.

An equity REIT can also invest in properties, providing greater flexibility in terms of your types of contributions. These require little involvement and typically offer sizable yields over time, making them a great way to invest without having to worry.

Real Estate Investing for Beginners Isn’t as Hard as It Seems

With the above information about real estate investing for beginners in mind, you’ll be well on your way toward making the decision that’s right for you.

Want to learn more about how we can help? Feel free to get in touch with us today to see what we can do.

5 Big Benefits of Investing in Real Estate