Real estate might be described as the ‘honeypot’ of investment in these recent days especially in a state or country that has good housing system. Real estate is that avenue that can fetch you lots of money even though it might not be your main job or you don’t have to keep focus on it, what you just have to is to keep abreast of properties you had invested in and be able to market your properties to the right buyer. People that should invest in real estate are those looking to go into another process of earning money, like maybe you’re into stocks and shares before, you might want to invest in real estate.
Another set of people that should invest are people who might be a newbie in the investment sector and you are looking for what to invest in, you should consider real housing. Talking about investing in stocks and share, you might really get a good cashflow because you’d have to wait for the appreciation to sell these stocks of yours but this is different in real estate because you can get a cashflow monthly by getting payments from your tenants from the house you’ve made available for rent.
There are many reasons to invest in real estate but these are some;
1. It Is a Tangible Asset
Intangible assets like stocks and shares are subjected to uncertainty which might get greatly affected by the crashing of the stock market or especially the one you have your money on and the reality of stocks and bonds is that you don’t have the full ownership, you don’t decide what happens to the particular stocks you had bought and if anything happens to it, you will be greatly affected too.
In real estate, this is not the case because your properties are tangible- they might be affected by rise and fall but they will always worth something and if you’re able to market your property very well, you’ll get a good buyer for it and you’ll get your initial payment and even profits. It might be more or lower than your profit projections but you’ll always make profit.
2. Real Estate always Appreciate
Using my residentiary area as an example, there were projections in the early 2000s that investing in lands and housing in the community will give back very massive profits in years to come, the projections were correct which is always the case for real estate. When you invest in real estate, your cashback will always be tangible, my residentiary area which had its land sold for tens of thousands is now sold for millions, imagine investing some thousands then and then you getting a cashback of millions now, real estate is just massive and it’s really the right thing to invest in.
3. Good Cash flow
As stated earlier, most investments like stocks and bonds will only provide “cashbacks” quarterly or annually which is not always sure because at some points in the investment, you might have to wait for some period of time so the market can go bullish. Real estate is not like this because you can easily get “cashbacks” monthly and you don’t have to wait for the market to go bullish before you get your profits, an example is someone who has a house for rents, you can decide to get your rents monthly or even in fortnights, this more like getting steady cash day in day out and you might even decide to sell the property and get a capital gain from it.
4. There’s a Budget for Everyone
There is this popular notion about real estate, talk about you have to have tons of money to invest in it and this is not the case. When you’re at that stage of delving into it, you can make your researches to look for legal realtors and real estate firms that provide different type of investment based on different budgets, some estate firms even offer properties for installments provided you have a good income stream to be able to make payments at the stipulated time until the property is fully yours. Buying wisely is great, cut your coat according to your size and you won’t have problem investing in real estate.
5. Great Retirement Savings Plan
Investment in real estate is a long term one and as time goes on, it appreciates and you get more equity in the property. At some stage in your life, you might decide to retire and settle down at home to watch the world from there, your investment in real estate might be the thing that will save you from ‘sapa’ that comes with being a pensioner in this country. You might just decide to continue getting your rents from your tenants annually or monthly or might even decide to sell the property which will obviously be different from the price of the initial payment, you get good gains from this and you rest at home and enjoy the advantage of good decision you had made since. It’s just a good feeling.
There is always this joy that comes with earning from something you decided to invest in because of a good future projection which at that time might be uncertain but in the long run, you get a good cashback from it. You should know, as with any investment, you should always make good research before delving into any investment, it helps a lot but real estate might be the thing.