I am sure that this is not the first time you are hearing about real estate investment. This is because fortunes are made in real estate regardless of where it is and where it is heading. Investing in real estate is one of the best things a wise couple can do.
In fact, now is the best time to start investing in real estate, property values are at relatively low prices than they have been in the past fifty years and with real estate mogul Donald Trump becoming the next American President, the industry has a very bright future indeed.
Instead of waiting on the sideline waiting for another crisis to rock real estate industry, you can jump in now and build a sustainable income that will outlive you. As of today, real estate has remained one of the best methods most people are using to create multiple sources of income. It does not come and go as far as people will continue needing where to live.
There are thousands of reasons why you need to start investing in real estate today. We will take a look at some of the reasons why real estate investment is considered the best type of investment you can make today.
Why Invest in Real Estate?
1. Safe Investment
Real estate investment is one of the safest investments you can make today. There is no reason leaving your money in the bank for bankers to be making money for themselves. Investment in this sector can continue to bring you profits for over 100 years. It is an investment you can pass down to your kids and even your generation. It is safer than shares and stocks. Although shares may have higher capital growth but property investment is considered a safer investment.
Appreciation is one of the reasons why most people invest in real estate. It simply means the increase in the value of a property. Most real estate investors purchase property and increase the value through repairs and enhancements before renting or selling it off. Thousands of hardcore investors are making serious money by leveraging the appreciation of property value.
You can purchase a property today, keep on increasing the value and rent every year for additional income. You can as well sell at the much higher price when you are tired of the property.
3. Inflation-Proof Investment
Most businesses are usually affected by inflation, but that's not the case with real estate investment; rents increase with inflation. On the other hand, mortgage payments on the property remain stable. This phenomenon ensures you make money from your investment without the increased expense for holding the property. In some cases, mortgages become more expensive for average consumers when inflation goes up, this will result in more renters and subsequent increase in rents.
Leverage is a powerful motivation to start real estate investment. When you combine leverage with an ability to purchase property with good rental value, you will be able to make lots of cash in return. Using leverage can allow you to use just $100,000 to purchase 3 properties with down payments, instead of just a single property at the same price.
This guarantees a great increase in returns as you will have renters paying monthly on all the properties.
However, you must understand how leverage works and how it impacts your business, it involves some amount of risk but when you use it well, you will definitely make a great profit from your real estate investment.
5. Easy to Get Started
You can easily get started in property investment without any special knowledge. All you need to start enjoying the benefits property investment has to offer is to get a good realtor. In fact, most property investors in the US today didn't start off intending to make their fortune through the property; they simply bought a house to live in. They start real estate investing only after seeing the value of their home increase - and realizing how much wealth they can generate from investing in properties.
You don't have to wait anymore while the banks are using your money to buy more houses for themselves. You can start today and put your money to work for you. You can jump online and start looking at prices of properties. However, it is recommended that you use the services of real estate professionals to be able to know the area and type of property you can afford and the one that can bring the biggest return.