1. Investing in land
When you invest in real estate, you are automatically investing in land as well. In reality, land can be most of the actual real estate investment, reaching far beyond 50% of the total amount. From a real estate investor's standpoint, the best land quality is when it is a limited resource. No more land is being created, which at its essence means that land is a finite resource. That being said, the price of land can only go up regardless of the economic condition globally. Which will result in the total value of the land investment will only increase as well.
2. Investing in tangible assets
Real estate is tangible which means you are buying a tangible asset. No markets are completely buffered from collapse, including real esate, but in real estate you at the very least have something that is a physical asset. When a person loses money in the stock market you can be left with nothing. Real estate can be used for a variety of purposed and have the ability to adapt.
3. Real estate markets are relatively stable
Compared to stock markets, real estate markets ted to be quite stable. Stock markets can be highly volatile. This means that an investor can make lots of money or lose lots of money in a fairly short amount of time. The real estate has seen volitilty but it tends to be significantly less than the stock market. This means that real estate can be a safer and therefore more conservative approach to investing.
4. Long term appreciation
Real estate markets are typically considered to be quite stable. Typically the long-term overall trend has been that prices will always go up. Even if property prices don't increase signifcantly year over year the long-term appricatiion typcially will. If you buy an investment property today, and held onto that property for for 10-15 years you would almost definitely sell it for more than you paid for it.
5. Regular income
Investing in real estate doesn't have to bring you profit in the long-term only. Many investors purchase investment properties to make money in the short term, through positive cash flow. Typically an income property will generate income through tenent rent, dispite the size of the income property. Stocks on the other hand do not guarantee to make money every month and sometimes not every year. Typically income properties will provide regular income which means it's value is far greater in the near term than other investment opportunities.
6. Hedge against inflation
Inflation is the idea that general price level goes up over time even if some prices drop down from one month to another. Real estate investing can be an better protection against inflation. Even though all prices go up with time, the prices of investment properties go up more rapidly. Real estate appreciation tends to overcome inflation, which means that real estate investing provides protection against inflation. And that's why real estate is the best investment option, as it is the safest option for investing your money to avoid losing its value to inflation.
7. Accessible to everyone
Finacial markets can be complex to understand and in order to have success you need to have a deep understanding of how stocks work. When it comes to investing in property you don't have to be an absolute expert in order to have success in investing in the right property. Common sense is the key factor in investing in real estate. Investing in stocks can be very risky if you are not an expert while investing in real estate is generally safe even for beginners as long as you understand the landlord tenent relationship.
The two most important things to remember when you're looking for any sort of investment riskiness and profitablity. Investing is real estate is an excellent choice for capitalizing on your hard earned money. It promises great return with little risk. Real Estate continues to be one of the best and safest options for investment.
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1. Investing in land