WHY INVESTING IN REAL ESTATE SHOULD BE A PART OFYOUR NEW YEAR RESOLUTION
Posted on: 20 Jan, 2023
WHY INVESTING IN REAL ESTATE SHOULD BE A PART OFYOUR NEW YEAR RESOLUTION.
It’s 2023 and the first month of the year. It is that time of the year when we set goals, make plans and map out strategies on how to actualize set goals as doing so presents you with some level of stability, drive and sense of direction which will pilot your affairs and decisions making for the rest of the year.
Amongst other plans made for the year, it is imperative that investing in real estate is on the list. Below, are few reasons why you should make investing in real estate a part of your new year resolution.
Return of Investment
Short or long term investment in real estate provides you the opportunity of earning higher returns of that which you invested. Whether you choose to earn rents or to transfer ownership, you are rest assured of earning more than you invested with little or no risks attached. Investing in real estate is highly profit oriented.
Resistance to Inflation
Real estate prices are very good in following the increase in money supply, inflation rate and wage growth over longer periods of time, and therefore real estate is a perfect asset class to protect yourself against inflation.
Constant Cash Inflow
Investing in real estate affords you the luxury of regular cash inflow while reinvesting your regular investment income will improve your investments’ return rate even further.
Real estate is a safe investment. By investing in real estate, you either become a direct or indirect owner of the property or, when lending money to the real estate developers, receive a mortgage as the collateral to your loan. In the worst-case scenario, the collateral can be liquidated to generate the cash necessary to pay back your loan.
Real estate investment is usually very transparent and it is relatively easy to analyze the real estate development project’s cost and projected income. The same concerns rental properties, where the lease income and the costs of owning and maintaining the property are not too complex.
Direct real estate investment decisions are generally made by yourself. You can choose to invest in different real estate asset classes and tune the investment’s risk-return profile to be matching your individual preferences.
When building a real estate investment portfolio, you are in direct control of any investment decisions you make.