Investing in real estate may be quite risky, but it’s also one of the best investments you can ever make in your life.
Not sure whether to take the plunge or not? Here are three good reasons why you should invest in real estate, right now.
1. Real estate properties are tangible assets
Have you ever heard of the term, “paper-rich”? It’s typically used to refer to stock market investors who have most of their wealth tied up in company shares and stocks.
While stock market investing is one of the quickest ways to earn money, it’s also one of the riskiest, along with bonds and other intangible assets. Thanks to their inherent nature, the value of these assets can crash to zero just as soon as they reach their peak, without any warning whatsoever.
On the other hand, tangible assets like real estate will almost never be valued at zero, since there is always something physically there that you can hold onto. Not only will you have better control over your investment, but you’re also free to use it as leverage for other ventures while letting its value increase in time.
2. It’s a great way to earn passive income
Flipping properties isn’t the only way you can earn money from real estate. You can also use real estate investments to create your own sources for passive income, namely by investing in several rental properties.
Do keep in mind that owning rental properties isn’t always a walk in the park, though. Regular maintenance of your properties is a must and you’re also required to play the role of the landlord, which could cause some headaches on your part.
Then again, if being a landlord is not your cup of tea, you can always hire someone to do that job for you. Plus, if you can earn enough money to cover all your expenses anyway, owning rental properties is pretty much like getting free money for virtually no work at all.
3. Real estate prices appreciate through time
Although dips and crashes are inevitable, it’s a well-known fact that real estate prices will almost always appreciate through time. Even those properties whose values fell horribly during the housing market crash of 2008 are already worth way more now than they have ever been before.
Land is a limited resource, which means that regardless of how high the demand will be, its supply will always stay the same. And just like anything with high demand and low supply, real estate prices are also bound to increase along with the increasing demand for housing. What better way to get in with the times than to invest in real estate?