“Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity had devised. It is the basis of all security and about the only indestructible security.” -Russel Sage
Over the years, investing in real estate has been one of the most reliable and efficient ways to generate income. In fact, an investment in real estate is almost always guaranteed to be a profitable venture if you complement it with entrepreneurial and savvy marketing skills. Seeing as investing in real estate is one of the tried and tested methods of generating profit, it would be safe to assume that it falls under the category of a great economic enterprise. With this in mind, if you are one of the savvy entrepreneurs who is looking to diversify your business profits, then it is high-time you get into real estate investment. Be prepared, though, as being a real estate investor is not an easy endeavor. It requires discipline, commitment and a bit of patience (You cannot expect to sell big right away). However, it is one of the excellent ways to build and generate wealth in the long term.
Here are some of the reasons why you should begin investing in real estate:
1.) It is easy to get started
Unlike any other field of profit-generating enterprise, investing in real estate is relatively easy to get into. In some cases, if you have extra properties in prime areas such as an Ayala Land condominium in Taguig, you can already get started. Home values increase over time, and when they are situated in prime places, you can even have a premium fetching price for them. If you started proactively investing in real estate today, you would see just how easy it would be to generate profit.
2.) Steady cash flow
One of the easiest ways to have a constant cash flow is to have a string of properties rented out while waiting for the monthly rental fee to be paid by tenants. As managing rental properties requires minimal supervision and management, you can spend more of your time in building other businesses, reinvesting in more real estate or even traveling. The cash flow generated from rental properties is not only steady and stable; it is predictable as well which is perfect for entrepreneurs who are looking for a startup investment with minimal risk involved.
3.) The property generally appreciates
More often than not, when the loan os being paid down, a real estate's value generally goes up. Recessions may occur, and the values have sporadic intervals of being either high or low, but over time values do increase. There is appreciation in the real estate properties you buy. If this is hard to believe, take a look at your existing real estate property today. How much did you have to pay back when you purchased it? How much do you think it would cost you today? That should be enough to address your doubts.
4.) It is a tangible investment
Unlike shareholder stocks, real estate property investments are substantial, tangible and in a sense, physical—one you can feel, look at and touch. For many investors, this is a comforting thought, and in many cases, it feels more real to them. While it remains as a psychological comfort, for the most part, the monetary benefit it entails is undeniable. Amidst the erratic state of the real estate market and with fluctuating market demands, you can at least rest easy with the knowledge that the property you have and the land it is situated on have a semblance of tangible value. The same cannot be said for shares in a financially bankrupt company.
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