Top 5 Reasons You Should Invest in Real Estate

Everybody wants to achieve financial freedom at some point in their lives, but most 9-5 jobs won’t get you there very quickly.

One of the best ways to make money is to invest in real estate.

If you are still not convinced, this post will give you five reasons to change your mind.

YOU CAN SELL YOUR ASSETS

Real estate is a very lucrative side hustle. New development projects go up every day to cater to rising housing needs. When you put capital into a building or buying a new property, the value is sure to appreciate in a few years and you can sell for more than 100% profit to the next happy buyer.

Many times, people buy existing property for low prices, then they renovate and refurbish it before reselling. This is called the good old Flip and Sell and it is one of the oldest real estate investing techniques.

GREAT SOURCE OF PASSIVE INCOME

Real estate literally helps you make money in your sleep. If you would like to hold on to your property, you can lease it out and realize income from rent. This way, your asset generates its own income and you make more money. That is called Passive income and so many real estate moguls make money this way.
This works even better when you pick a niche market that yields regular income. For instance, you could invest specifically in multi family residential units, or you could pick a more commercial view and focus on office developments. Either way, there is a lot of money to be made.

BUY ASSETS FOR LOW PRICES

A unique thing about the real estate market is it has different cycles and seasons. Some seasons are for buying, others are for making sales. Understanding the market and monitoring the trends can help you get more profit out of your property eg. buying for low prices when everybody is selling out, and reselling when the market supply is all out.

This is another reason why picking the right market niche is highly important. You can focus your attention on understanding the cycle of your segment and get really good at predicting the tide.

LIQUIDITY

Owning a property, especially in a great location, also means you can quickly cash out if you ever need to. Real estate is a high demand market, so someone will always be willing to buy in case you need to quickly sell and make some money. Certified real estate brokers are always willing to help make the process easier and faster. That is why they say real estate is highly disposable. You can get rid of it and get your money back.

This also helps you to always have handy capital to re-invest in the next big market boom.

PAPER ASSETS DO NOT ALWAYS GET A WIN

For a long time, people have looked to the Stock market as the primary means of investing and making money. The problem is, the Stock market is very sensitive to changes and can crash unexpectedly like it did in 2008.

The Real Estate market is more solid and you can see any trouble from a mile off when you have expert advice.

This gives you time to pack up and go if you have to. The risk of heavy losses is therefore way lower than in the stock market.

Therefore, real estate is a healthy option for investors with a low appetite for risk.

BONUS REASON: COLLATERAL

In case you ever need to get a loan for an urgent financial need, a lot of banks and other institutions will usually require you to present some sort of collateral. This is a form of insurance to ensure that you have the capacity to repay your deficit.
In that situation, you can always present your property or get a mortgage. As long as you pay up your loan within the required time, it’s a win-win situation.

The real estate industry is a really profitable industry. A lot of millionaires have gotten a huge part of their fortune from real estate, including everybody’s favorite guy, Donald Trump.

Do you have what it takes to win big?