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.