10 reasons why real estate is a great investment
It’s easy to start
Investing on Real Estate
Specialist knowledge or training isn’t a requirement for property investors. There are many successful real estate investors who never intended to earn through selling properties – they simply bought a house, saw its value increase over time, and discovered it’s a great way to earn more money.
It’s easier compared to stocks or shares
Getting into stocks is difficult: you need to have a solid grasp of a lot of things such as trading, research brokers, fund managers, and how the whole system works, among other things. On the other hand, real estate investment is much simpler – you can simply go online and look for properties. There’s much more to it of course, but most of the research you’ll need can be done online, by visiting different suburbs, talking to other professionals, and so on.
It’s easy to get financing
It’s a given fact that lenders like properties. Home loans form a significant part of every bank’s business model, which means lenders tend to prefer to lend on residential property than other types of assets.
You can increase your home’s value by renovating
Renovation is a surefire way to increase a property’s value. Investors have many options with renovating. You can update kitchens and bathrooms, install new carpets, improve landscaping, and so on. With the right strategy, even a few thousand dollars can increase a home’s value significantly.
Your properties can help your children’s future
Your kids can also benefit from your investment. Sure, you can do this with shareholdings too, but it’s riskier and not as solid compared to a well-positioned property that increases value over time.
It’s an affordable investment
Investing in real estate is possible, no matter what your budget is. You don’t have to aim for luxury properties in exclusive gated communities, you can start by buying a 2-bedroom apartment in a more affordable area. And if you play your cards right, you can expect equivalent or even better growth compared to more expensive properties.
You have complete control
When you buy a property, you get complete control over it. You can choose to increase its value, or raise its rent and increase your cash flow – something you just can’t do with shares in a company.
Properties are assets you can use
A property is still something you can use, whether you intend to use it as an investment or not. So in case you hit a rough patch, you have the option of moving into that property, and decide to move out again eventually. In other words, your investment stays intact.
It’s very stable
Compared to the share market, the real estate market is much more stable. If you choose a very desirable area, it’s unlikely that the market will crash overnight, or even during an extended period of time. By doing some research about various communities or properties, investors can easily avoid high-risk areas.
You can choose not to do the dirty work
Because the real estate industry is already well-established, you can find different types of service providers such as property managers, buyer agents, builders, and so on. It may cost you, but getting the services of the best providers often gives you a competitive advantage, thereby boosting your profits significantly.
For market information on the Coachella Valley and other nearby areas, visit this page.