Investing a large sum is a tricky job, no one wants to loose a large chunk of his savings or earnings on a bad investment. Billionaires around the world have become so through diverse investments made at various points in their life. Investing in shares is the most common form of investment most people know of. However, it isn’t the only way to invest neither is it a very reliable way. Investing ensures that your money works and earns for you. According to Robert Kiyosaki, the author of “rich dad poor dad”, making the right investments ensures you escape the corporate world of rat racing, and enjoy a life of multiple streams of income. If done right, you may retire early and go spend the rest of your days in choice locations around the world.
This year 2019, you can decide to quit keeping your money in a fixed deposit and invest it. Knowing how volatile the investment world can be, we have put together a couple of reasons why you should invest in Real estate (Housing)
1) It is a stable Investment;
For big time risk takers and investors, Real estate is a proven stable market to invest in. The fluctuations of the stock market are rarely found in the real estate market. It is a safe and sure investment. If you watch closely at the stock market, you know that things aren’t always stable. A really great day of trading can be followed by a huge downward spiral and it’s that volatility that makes it a too much risk investment. In fact, most people are so cautious when it comes to investing in stocks that they’re keeping 70% of their portfolio in cash.
Real estate, on the other hand, offers a lot of insulation against bumps in the market. The real estate tends to remain stable even when stocks tumble. If you’re not sold on putting a big chunk of your money into stocks with all of its volatility. Investing in property can be a more lucrative alternative to letting your money sit in your bank account.
2) Provides a stable Income;
Possibly the best reason why everyone should invest in real estate is the immediate impact it can have on their income capacity. If you build a home and then rent it out, for example, you’ve got a steady supply of income each month beyond your regular salary. If you decide to flip houses instead , you’ll also have access to more money once the home sells.
Either way, that’s money you can use to pay loans taken if any, save for retirement or put towards the purchase of your next investment property for sale or rent. That extra income can be a welcome addition if you’re just starting your career and you’re not making big bucks at your day job.
3) No special knowledge required; You don’t need specialized knowledge to start investing in real estate. It is easier to research and invest in than the stock market. Understanding and investing in the stock market requires a lot of education and specialist knowledge as well as research brokers and fund managers to help. Which is complicating to say the least. Investing in property is however a lot simpler: it’s as simple as jumping online or going offline to start looking for properties from legitimate and registered real estate agents, or searching for reliable contractors to help you build your own set of houses. A significant amount of research can be done online even, by visiting open houses and auctions or contacting building contractors and firms. A building contractor would immediately help sort things out for you, you don’t need to have vast specialist knowledge beforehand.
You don’t need specialized knowledge to start investing in real estate. It is easier to research and invest in than the stock market. Understanding and investing in the stock market requires a lot of education and specialist knowledge as well as research brokers and fund managers to help. Which is complicating to say the least. Investing in property is however a lot simpler: it’s as simple as jumping online or going offline to start looking for properties from legitimate and registered real estate agents, or searching for reliable contractors to help you build your own set of houses. A significant amount of research can be done online even, by visiting open houses and auctions or contacting building contractors and firms. A building contractor would immediately help sort things out for you, you don’t need to have vast specialist knowledge beforehand.
4) You will be glad you did;
Most Investments typically take some time before they begin to yield very large returns. This is why if you start today and invest smartly in real estate, a few years from now you’ll be proud of yourself. You would have earned yourself a pat on the back a couple of years from now for a job well done. Sincerely, we are at a point where real estate investments just make sense and are the right thing to do. But, like any other investment, please be sure to understand what you are doing and make sure to diligently do your home work and research to find the best building contractors/consultants. Getting a good property consultant would help you make the right purchases and build your properties in good locations.
5) Protection From Inflation;
Investing in real estate protects you from the hard bites of the inevitable inflation. This stems from the positive relationship between GDP growth and demand for real estate. As economies expand and standard of living increases the demand for real estate increases as well and drives rents higher and this, in turn, translates into higher capital/monetary values for the investor which is you. Therefore, real estate tends to maintain a steady increase in Return on investment (ROI), by passing some of the inflationary pressure on to non house owners who pay rent and by incorporating some of the inflationary pressure, in the form of increase in property worth.
6) Its a long term investment you can leave for future generations;
When thinking about long-term investments for yourself, you don’t just have to think of the span of your own lifetime, you can also think about your children too. Depending on the legal structure in which you own your properties, you can pass your investments onto your children anytime you want. Even when you retire. Though you can do this with shares too, but how many top companies from even 20 years ago are still at the top of the NSE 100? Not a lot, however a well-positioned and planned property should continue to grow in earnings and capital worth over a span of tens of years.
