Real estate is a very solid investment. Whether you choose to invest in residential properties or commercial properties, any money that you choose to put into real estate is only bound to grow.
These are some of the numerous real advantages of making this kind of investment:
This is a very safe investment
Real estate investment is very safe, because generally the value of property is constantly on an upward trend, in spite of changing economic times. This makes this type of investment much safer than other investments such as stocks whose value varies greatly according to economic times. So you are much safer investing in real estate.
It’s easier to research
For real estate investment, you only need to do research online and probably a few other areas where it is very cheap or free. This makes it very easy to get into this kind of investment. It is much better compared to the stock market where you will need plenty of expertise and knowledge about the financial markets, and you will probably need to pay a broker if you invest in the stock market.
Easy to get financing.
Real estate is probably the easiest asset to get financing for from any financial institution. Most banks offer to finance up to 95% of the value of the property and give some of the lowest interest rates. This makes it super easy for you to invest in real estate since you get your financing without the struggle you would go through if you were making another investment.
Can be used as a security
Real estate gives you the leverage you need to borrow, since it can be used as a security. Most banks are willing to lend you up to 95% of the value of the property because they are confident in this type of security. This is very different from the percentage you will be able to borrow on a security such as stocks portfolio.
Develop it for profit
You can develop your property and make several units for lease. This will give you some handsome profits that will supplement your employment income greatly. This kind of income gives a good solid base even in times of unemployment.
Tenants help subsidize mortgage payments
Your income from tenants helps to reduce the burden of the mortgage payments. This is a great benefit because it will not be such a struggle for you to meet your financial obligations, as it is for most people.
An asset in old age
With a real estate investment, you are almost guaranteed a smooth transition into retirement. This is because you continue to get the income from your tenants and you can manage to maintain a good lifestyle even after retiring.
An asset to hand over to your children
It is a great thing for children to get a good inheritance of real estate from their parents. This is the kind of investment that will keep its value and actually be of much higher worth after 40 years. So invest in real estate and have something worthwhile to give your children when you are gone.
These reasons are enough to convince anyone to take the plunge into real estate investment. All the best as you invest!