The world of real estate is like a raging sea. The waves go back and forth and it’s up to you to go with them or against them. Sometimes, the waves are too strong that you’re forced to adapt. But one thing is for sure, the waves are like an unstoppable force that will keep moving forever.
For many people who have never invested in real estate before, it might be very difficult to get into it. Considering how vast the entire industry is and how quickly things could change.
If you’re ever doubting yourself before investing in real estate, I want to say right away that real estate is the best investment today. And I will explain to you exactly why.
To describe real estate investment as a tangible asset, I want to compare it to investing in stocks. Investing in stocks vs. real estate is more of a personal choice based on your financial situation. So I want to make it clear that not everyone should invest in real estate because your situation might suggest that investing in stocks is better.
But there’s a clear difference why investing in real estate is still king. When you’re investing in stocks, you’re buying a small portion of that company. And the value of your investment will depend on the value of the stock.
When you’re investing in real estate, you acquire a physical land or property. The value of your investment will depend on the value of the property, but you can also get income from renting it. Real estate can also be leveraged if you know how to do so.
For many investors, investing in a tangible asset is still preferable, and that’s exactly what you get from investing in real estate. You have more control, and you can easily diversify your investment.
Owning a property can make you richer
By owning a property, you basically don’t need to do anything besides maintenance and/or repairs, and the value of the property will go up – sometimes even doubled. Many people have experienced it themselves, from owning a small property, selling it, and buying a bigger property.
Don’t get discouraged when your property’s value is stagnating. Try to find out what repairs you can do to increase its value. Or, you might just need to wait for the demand to go up. It’s not uncommon for small properties to be the golden ticket for investors to get into the game of real estate.
Long haul and stable income
Becoming a landlord is something that many people dream of. By investing in real estate, you can turn your property into your money-making machine. It is perfect for people who are in it for the long haul and don’t mind a slow return.
If this is what you want to do, your best bet is to invest in residential properties. These properties are the best if you are after a stable rental income. All you need to do is to understand all the related legal fees and be prepared of managing your properties 24/7.
The joy of making the right investment
Just like with any other kind of investment, when you buy the right property, you know you’ll be making a profit. But with real estate, the excitement and satisfaction are very much real and you can even smell the money.
If you’re good enough at investing in real estate, you could determine which properties are good and which are bad. Because not all properties are good, you need to tread carefully if you want to make a profit.
Some people are after certain types of properties, i.e. residential properties, general multifamily properties, office properties, small stores, etc. The location of the property will also play a critical role in creating a profit. If you’re planning to sell a business property later, make sure the location isn’t too far from the city.
Investing in real estate is very satisfying and lucrative if done right. You’ll have more control and monitoring your real properties is easier than monitoring your stocks for example. You need to know what your end goal is, then you plan your move from there.