June 30, 2020

Real estate investing carries many benefits for investors.

As long as all factors are considered before investing, real estate can prove to be a sound investment. 

Real estate investing has proven time and time again that it is a wealth-building vehicle for savvy investors. 

The economy is getting stronger, housing prices are starting to rise, and buyers are confident.

The passive income generated by real estate investment help build up an income stream to re-invest in other properties, pay for luxury living expenses, or to be able to retire early and live comfortably well.

Another benefit of real estate investing is the fact that it appreciates over time.

While the market can have its ups and downs, housing values generally rise over the long term. 

Although there are certain periods when the market value goes down, over the long term, real estate, in general, appreciates and goes up in value.

This makes real estate an attractive investment as it can be a relatively safe store of wealth.

For example, this means real estate generally can hold its value better and stronger well over time.

Real Estate Investing Offers Flexibility

As investors, we must be aware of the potential benefits and consequences of an investment. 

There are numerous potential benefits of real estate investing, such as financial stability, appreciation, and storage of wealth.

Having the right blend of real estate in one’s portfolio can offer just enough diversification to help offset exposure by not hyper-focusing on one single investment profile.

Investing in real estate gives you flexibility. Invest in real estate, build up your portfolio over time and use your Investment income. You can manage your properties and projects around your schedule and work for yourself. 

This offers you the flexibility of setting your own schedule and BECOMING YOUR OWN BOSS

Investing in real estate doesn’t have a salary cap, so your earning potential is limitless. Real estate is one of the best ways to build long term wealth.

It is a proven fact that Real Estate Is An indestructible security, ever increasing in value.

Holding a property in the right market can be an extremely lucrative investment. 

Wise investors cease every smart promotional advert or distress sale opportunity to secure a future of wealth and luxury retirement. 

These are one of the many benefits of being not just an investor, but a wise real estate investor.   

 “The greatest store of wealth internationally today is REAL ESTATE INVESTMENT.

The Value of Real Estate Appreciates Well Over Time

Residential, Commercial and Industrial real estate has been a very attractive investment for many individuals and institutional investors. 

Recently, the amount of capital chasing the ownership of real estate has substantially increased.

Values are increasing for two reasons. 

The first is that sales and rental rates are continuing to rise because of the high rate of demand and increasing appreciation rate by the day. 

Secondly, with the number of investors bidding on Residential, Commercial and industrial real estate investments, the cap rate, or yield, are continuing to compress, which is increasing in value.

Real Estate Is Easy to Finance & Provides Leverage

Real estate as an asset investment vehicle is easy to finance. 

The ability to magnify the investment return with financing is called positive leverage

Stocks, bonds, commodities, and art do not offer the same ease when being used as collateral for financing.

Real Estate Can Be a Stable Investment with Ongoing Income

Unlike stock market investments, real estate investment does not wildly fluctuate on a daily basis. 

Real estate is a stable investment that provides you with an income in huge returns. 

You simply collect your ongoing income (known as Cash on Cash Return) on a periodic basis and hope to sell when the price appreciates substantially and the market is high. 

Of course, the market isn’t the same in every city, so opportunities to buy and sell can vary substantially across the country. 

Many people compare real estate investing to bond investing, because real estate provides stable cash flow for the owner. 

However, bonds are more sensitive to market fluctuations. 

Real estate properties won’t immediately change in price based on capital contributions or because of political volatility. 

This makes real estate a safe and stable investment.

Owning Property Generates Wealth

Everyone should own at least one plot of land, a house or a piece of property. 

One of the many benefits of investing in real estate is being able to generate wealth through appreciation, building equity, and hedging against inflation. 

It can also provide cash flow with passive income from sales or rental properties. 

These are the reasons why real estate should be a key component of your investment portfolio.

It Can Be an Alternative Means of Saving for a College Education

Real estate investing can be an alternative vehicle for college savings. 

It is recommended that young families invest in the purchase of one property for each child they believe will attend college. 

The property can be financed instalmentally, thus being paid off prior the child’s 18th birthday. 

It allows families to actively save through the renters’ payments. 

When the property is paid off, they can either sell or continue to use it as a source of cash flow.

Real Estate Investing Is a Hedge Against Inflation

While most people fear inflation, this is not the case with real estate investors. 

Investing in properties is an excellent hedge against inflation. 

As the price level goes up, so does the selling and rental income you get from your property and your investment’s value. 

This means that real estate investors are protected against both the immediate and the long-term effects of inflation. 

Although this might not be the first benefit of real estate investing that comes to mind, you should take it into consideration because for real estate investors, an increase in the cost of living is associated with a growth in their cash flow.

Enjoy the Portfolio Diversification Benefits of Owning a Physical Asset

Investing in real estate offers inflation protection as well as the portfolio diversification benefits of owning a physical asset. 

Real estate is a tangible asset that can always be monetized through renting, selling or residing in the property, regardless of financial market conditions. 

This makes it far more resilient against asset market swings compared to traditional stocks or bonds. 

Real estate is part of the broader category of alternative investments, 

which include everything from art to collectibles and physical gold. 

The tangibility of real estate also affords property owners with a sense of stability during bear markets or short-term stock sell-offs.

Indulge Your Entrepreneurial Spirit

There are many ways to invest in real estate and become an entrepreneur. 

You can buy a home, fix it up and put it back on the market for a profit. 

Buy land or property to hold and let the appreciation create wealth. 

Perhaps you become a landlord and start purchasing rental homes or for ROI benefits, residential, commercial, industrial, multi-family homes, or even apartments. 

Maybe land development is for you. You are the boss.


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