All investments involve risk. But if you’re looking to invest a chunk of change, you want the most bang for your buck with the smallest risk possible: real estate.
Sure, we work in real estate and think it’s a wise investment. Otherwise, we wouldn’t make the investment ourselves. But we do.
There’s lots of other types of investments like stocks, business partnerships, angel investors, and so on, but real estate is the smartest investment you can make. Here’s why.
It’s a Physical Asset
Real estate offers you a hands-on investment opportunity. When you buy a property, you see the fruits of your finances. And you’re a part of the process. You can meet the people who manage your investment and see the way your money is spent.
Plus, you’ll always be able to gauge your return. Real estate comps aren’t easily manipulated. By looking at market comparisons, you get a clear picture of the value of your investment. Rather than blindly sending your money to a company whose nameless employees choose your stocks, you see tangible results and work with people you know.
Property Value Always Comes Back Up
Every investment carries risk. And not all times are good. But if you hold on to your real estate investment during bad times, the market will eventually rise again. The same isn’t true with stocks.
During the recession, people lost millions of dollars in the stock market. Once they lost that money, it was gone forever. But when the market crashed in 2008, people who owned real estate saw the value eventually come back if they held their property. Home values continue to rise over time — guaranteed — even if there are setbacks along the way.
You’ll Gain High Appreciation
Real estate always appreciates in time. If you work with a pro, they can help you find the right market at the right time. Then you’ll likely see even greater gains than the average home buyer.
You Reap Tax Benefits
As your property gains value, you can take advantage of tax benefits. Money gained in a re-finance is tax-free money. So, if you need to pull the equity out of your property, you’re free to do so — tax-free!
Real Estate Gives Options
Things change, and property investment gives you flexibility. You can borrow against your property for additional loans. If you need your cash, sell it. Not every investment turns into cash quickly, but it takes just 60 days in real estate.
Plus, there’s always the option to move into the house if you need a place to live, then rent it again later.
There’s High Leverage
You don’t need all the money up front to purchase a home. Often, you can buy a house for 10% (or less) of the purchase price and use the money you save for other things. It can be tough to get a loan for other investments, but financing a property is relatively easy because you’ll likely get a good return.
You Can Combat Inflation
Inflation is inevitable. But as expenses go up, you can adjust for it by raising rent. Plus, your asset is a commodity gaining value. As goods become more expensive, so does the housing market.
They’re Not Making Any More Land
You can’t consider inflation and market conditions without also factoring in supply and demand. And in areas like North DFW, houses are in high demand while the land supply dwindles. When you own property in an area like this, your investment gains rapidly as more people look for a home.
You Have Unlimited Resources and a Time-Tested Model
You’re not the first person to invest in real estate. Millions of people around the world invest each day in property. Any problem you face, someone’s faced before. And the real estate community is one of the most helpful communities you can join. Sure, we may be a little biased, but someone’s always willing to help you figure things out when you need it.
Never take an investment lightly. Choosing where to put your resources is always a big decision. But, all things considered, real estate consistently will be one of the best options you’ll find for low-risk investment with the potential for big returns.
