First of all, I want you to know that YOU can invest in Real estate, regardless of who you are or what you do. You don’t have to be a specific type of person or have a particular financial status to invest in real estate.
If you desire to grow your portfolio, diversify your investments, and enjoy cash flow and capital gains,
you should invest in real estate.
WHO SHOULD INVEST IN REAL ESTATE?
- Investors looking to Diversify
If you’re already invested in the stock market or other risky assets but want to diversify, branching out
into real estate is a great solution.
- Anyone Looking to Start Investing
If you haven’t invented it yet, real estate is a great place to start. You can even ‘house hack,’ buy a multiunit property, live in one unit, and rent out the rest. This allows anyone, even beginners, to start investing in real estate.
- Investors Looking for Cash Flow
Most investments don’t provide cash flow. You invest your money and leave it, not accessing it until you
sell the asset, such as stocks. If you invest in buy and hold real estate, you earn cash flow monthly when
you have tenants paying rent.
Now, These Are The 8 Reasons Why You Should Invest In Real Estate
- It’s a Tangible Asset: Investing in Real Estate will give you a sense of ownership because you can
see and feel your investment. It is a physical asset other than Intangible Investment for example,
Stocks or bonds where all you have after investing is a Document and once the stock market crashes
the Document might not worth much. If you invest in real estate, you have a tangible asset. Values
may increase and decrease throughout the years – there’s no guarantee they will not fall, but tangible
assets are worth something. You still have a piece of property to sell should you need to get out of the
investment. Since it’s a tangible asset, it takes a little longer to sell it since you need to work out a
deal with a buyer and go through all the legalities. Still, in the end, you’ll walk away with your initial
investment and hopefully a capital gain if all goes according to plan.
- Real Estate Values Usually Appreciate: If you invest in a home for long enough, chances are it
will appreciate, making your investment worth more than you paid for it, You can also force
appreciation by renovating or improving the property. Whether you buy an undervalued property and
fix it up to sell, or you renovate a rental property, you can increase the home’s value faster than
natural appreciation occurs, giving you an even greater return on your investment.
- You Can Leverage Your Equity: As you pay your mortgage balance down and/or renovate the
property to increase its value, you can leverage the equity to further your investments. The equity in
your property is the difference between your home’s value and the amount you owe on your
mortgage. Any difference is your profit.
If you keep the home, you can’t use all of the equity, but you may be able to take out up to 80% of the
home’s value, using what’s left to invest in more real estate. This is a great way to increase your
portfolio without waiting until you have enough money saved for a 20% – 30% down payment for
- Real Estate Provides Cash Flow
If you invest in a buy-and-hold property, you can rent it out and earn monthly cash flow. Most
investments don’t provide cash flow. At the very least, they may provide dividends, but you only
receive them quarterly or sometimes annually. Depending on how you manage your property, real
estate can be a passive investment.
- You May Be Eligible for Tax Deductions
When you own investment real estate that you live in, you get very few deductions. Most
homeowners don’t itemize their deductions, so they can’t take advantage of real estate savings. Even
if you itemize, you can only deduct your property taxes and mortgage interest in most cases. When
you buy and hold real estate, renting it out, you own a business rather than just an investment. The
IRS allows you to take many deductions on any expenses you incur to maintain the property.
- It’s a Great Retirement Savings Plan
When you invest in real estate, it’s not liquid. You invest in it for the long term. As time passes, you
earn more equity in the home. When you’re in retirement or near it, you can sell the property and use
the profits to get you through retirement. Many call it a forced retirement plan.
- You Have Many Options
There’s more than one way to invest in real estate. Many people buy and hold real estate, as it
provides a nice monthly cash flow and can help you save for future goals. Real Estate Company
provides you with all the information you need to choose a property, including the financial
information. If you are a fixer-upper type person, you may enjoy fixing and flipping. This involves
finding undervalued properties, rehabbing them, and selling them. This usually happens within six
months, so you don’t have a lot of carrying costs. You can then turn around and buy another property,
doing it as many times as you want until you reach your earnings goal.
- You Don’t Need a Lot of Money to Invest in Real Estate
Many people assume they need a ton of money to buy investment real estate. You don’t. When you
find the right property with the help of a good platform, you’ll have an easy time getting financing if
you have a platform decent credit and have your debts under control. When you can get traditional
financing, you need only 20% – 30% of the sales price to put down on the home or Land. This means
you can leverage your investment – investing in an asset worth much more than you invested. If the
property value increases, you earn an even larger return on your investment.
I hope this list goes a long way in helping you to figure out that Real estate is also meant for you and the reasons why you should invest