There are many different options and ways to invest your hard earned money. Why should you choose to invest it in real estate?
Starting with the basics, real estate can be a more stable thing to invest money in compared to let’s say, the stock market. Stock market values fluctuate and change every day…sometimes for the better and sometimes for the worse. However, in real estate, your investment is much more stable and values won’t change at the snap of a finger. Values change over a longer period of time and aren’t immediately affected by government decisions.
Another way real estate investing is more investor-friendly compared to stock markets, is because in order to invest, you only need a down payment or a fraction of the total cost to initially contribute. When you invest in stock markets, it is all or nothing when it comes to putting money down. If you were to purchase a property, you put down what you can and the bank takes care of the rest, but you still walk away with 100% of the profits.
It’s never too early to start thinking about retirement and what you can do now that can benefit your cash flow in the future. Investing in real estate can help you live comfortably during retirement and it can allow you to still have the time to do things you love, like looking after the grandchildren or taking more opportunities to travel.
If you consider owning an investment property, it is a sure way to be able to see cash returns in the future as long as you do it right. There are many options when it comes to investment properties – renting out a vacation home, apartment, house or even business space. You will receive passive income, income earned without much effort coming from your end, and ultimately help out the community! While almost everyone would love to own a home, many cannot afford to do so. By renting out a house or renting out space for a business, you help the community become a better place!
Also not to mention, there is a huge benefit of being able to earn tappable home equity when investing in real estate. Equity is a very powerful financial tool to have as the years pass and you pay off your mortgage. Home values have the ability to increase as time goes by and that ultimately increases your tappable equity.
If looking into an investment property or purchasing a new home is not in your cards right now, there is also always the option to crowdfund. There are sites available for you to invest in for things like construction projects, the flipping of a home or renovating a business. You do not have to be physically present for these projects but can still earn a return as a stakeholder.
If you would like more insight on what you can do to help your future in real estate, give us a call – we’d love to chat and help you come up with a plan!