6 REASONS WHY YOU SHOULD REALLY GET INTO REAL ESTATE
Check out the following reasons why we started real estate investment:
1. SECURITY
Buying real estate means you bought a tangible item with your money. This is different from buying a bond or stock. Basically, stocks or bonds are only available on paper. You have nothing tangible to see as your investments. Seeing something you bought with money can be reassuring. Undoubtedly, you can see the value for your money.
2. SAFETY FROM ISSUES RELATED TO INFLATION
Inflation is a real issue for most investments. However, you are safe from inflation when you invest in real estate. Even you do not have to bother about hyperinflation. In a worse situation, there may be an increase in the price of every commodity. Eventually, there will be an exponential increase in rents. Therefore, the value of your real estate still remains steady. Factually, real estate is known to thrive when there is inflation in the US. Only real estate and gold still hold values in the face of inflation.
3. ABILITY TO GET REASONABLE LEVERAGE
Most assets make it difficult for you to get a bank loan. The banks will not accept the assets as collateral. And when they accept them, the offers are poor. However, real estate is very important in bank lending. If the properties are decent, you can get as much as 70% to 80% leverage. You can also get low-interest rates and amortization. Therefore, you can purchase a property that is five times your cash. Also, this offers you higher returns on your investment.
4. HIGH RATE OF RETURNS
Sometimes, the returns of real estate are very good. In such cases, the returns will be much higher than ordinary investments. For instance, you can get a regular 20% cash-on-cash returns on mobile home parks. Such high rates of returns are very attractive. Similarly, they provide appealing and unrivalled risk-adjusted returns. This is another awesome reason to invest in real estate.
5. ON THE GOOD SIDE OF THE MAJORITY OF MEGATRENDS
Foremost, this is not always the case. You need to choose the right sector to enjoy this benefit. Can you remember the biggest megatrends that the U.S is witnessing today? Some of them are the Baby Boomer and the advent of the internet. Also, the fact that Millennial do not desire big houses is trending. So, you can choose the best correct niche. Then, invest in the niche wisely. Without a doubt, the awesomeness of your investment will surprise you. Let’s consider this example. Assuming you purchased RV parts some years ago. You would enjoy the great returns from the highest RV sales ever. This is because 10,000 Baby Boomers are retiring daily. These retirees are spending heavily on RVs. Therefore, the megatrend will work in your favour.
6. AVAILABILITY OF MANY OPTIONS
Lots of individuals are oblivious of one fact. In reality, the real estate industry is merely a generic name. There are so many sectors under this industry. A few of them are apartments, mobile home parks, and single-family homes. Other sectors include self-storage, office, assisted living, RV parks, and marina. In fact, we have as much as 40 various niches under this industry. So, you have the option of picking any niche you like. However, make sure that it suits your investments and is profitable. Also, ensure it has a good future. Afterward, you can expect good returns on your investment.
CONTACT US
Do you need any help on real estate investment? Contact us today at Agent House. Our top-notch solutions will help your investment.
