There is a popular saying among economists: “buy a land because God doesn’t make new land”. Behind the joke is an interesting principle: it is an investment with high growth potential if you know how to take advantage of it, a great reason to invest in real estate and property.
Real estate is one of the best investments you can make. Whether you’re selling properties or renting them out, if you invest enough in maintaining or renovating your property in a short period of time, you’ll see its value increase, but that’s not the only benefit it offers. And in today’s article, that’s exactly what we are going to uncover! Enjoy the reading!
1. A Protection against Inflation
Although most markets have difficulties when inflation increases, in the case of real estate, it is beneficial. The principle is very simple: when the cost of things goes up, the value of your property and your rental income if you rent some of it also goes up.
2. Generates Cash Flow
Rental income is a regular income that you don’t need to invest too much time in. Payments from tenants help cover monthly bills, maintenance and leave you with a regular supplement that will give you more financial freedom.
3. Gives You Leverage
If you want to invest in other properties, renovate or need a larger sum of money, it is much easier to apply for bank loans or credit when you can use real estate as leverage.
4. Helps the Local Economy
When investing in properties that need to be renovated, you need to make sure that the labor and construction materials are as close as possible to reduce transportation costs. The direct result of this is that you will be supporting the local economy and providing jobs.
5. Has More Facilities than Conventional Investments
If you want to make any kind of investment, you normally have to pay the whole amount at once. In the case of real estate, when you buy a house, for example, you don’t have to pay the whole amount, because you can apply for credits from banks and public organizations. In this way, you will only have to cover the down payment and the deed costs at the beginning.
6. A Safer Investment
The risk of investing in real estate is much lower than in other types of investments such as the stock market, for example, because it is a much less volatile business and also gives you more opportunities to take shares when it is down.
7. You Have the Option of Moving
When you have vacant real estate that you are not renting, you can use it to change homes when you see fit based on your personal or family needs.
8. Generate Wealth
Owning multiple properties is not only a long-term investment for you, but you also increase the value of your family’s wealth. This means that real estate will continue to increase in value for a long time and your children will be able to enjoy this benefit.
9. Appreciation Potential
Real estate is unique in that it increases in value over time. You can be sure that the price of a piece of land or a house will rise regardless of the ups and downs of the real estate market.
We would all like to have immediate profits, but there is no doubt that investing in a property that appreciates over time is a great opportunity for you and your family.
10. Become Your Own Boss
A very sound piece of personal finance advice is “Make your money work for you.” Its meaning is most obvious in the case of real estate since it represents an investment that is valued, which allows you to manage your time and income as you wish and can give you enough stability to live off of.
Many people have managed to amass fortunes by buying, repairing and selling real estate throughout the world. Knowing what and especially when to sell or rent is one of the keys to success in this business. What will you invest in? Share it with us in the comments below!