It’s accurate to say that in this day, real estate investment is quite the rave, everyone talks about it. A myriad of people plays in that industry, whether as investors, developers, or middlemen (realtors).
But beyond the seeming hype, from a shrewd business sense, what truly makes a real estate investment tick and worthy of its notoriety?
There’s so much that having a diverse and active portfolio of real estate investment furnishes you, and we take in the task of breaking down why it’s so essential to have this set up in times such as ours.
For start, the tangibility of real estate has and will never change. It’s a tangible asset in the physical realm of investment, worth a good buck if done right.
It will always have monetary value, as opposed to intangible assets like those in the money markets, where the value of your asset is susceptible to man-made risks. Although the actual worth of a real estate investment might vary due to certain factors, it will always have worth.
Furthermore, appreciation is the gift that would never cease to give, provided your real estate investment is done taking into cognizance the factors that make for appreciation. Not only will the building itself grow in value, but the actual land that it’s built on will also be worth more over the years.
In our clime and market, it’s not uncommon for the land to be worth more than the house that stands on it or for the land value to continue to rise even without a house on it.
Thirdly, the wherewithal to stake incremental value to your real estate investment is in your hands. Adding amenities to an already existing property you own, or even making improvements and updates will greatly increase its value, whether it’s the addition of a pool, a home office, or kitchen improvements.
To cushion the effects of huge and adverse financial losses, investing in real estate is a great way to diversify your portfolio. Yes, you might already be an avid investor in cryptocurrency, stocks, and trading, still, spreading your financial weight around by also adding a solid real estate investment is the smartest way to go. If anything goes south with other investments you own, you’ll always have something to fall back to with real estate.
With real estate, another sound benefit that accrues is that you hedge out inflation. Because real estate stays in constant and never-ending demand, it retains its monetary power, thus providing a natural inflation hedge.
The flexibility of options that a real estate investment offers you are vast and manifold and this is another catch to it. You could choose to buy land in a developed or developing area, hold for years, and re-sell down the line(Land Banking), you could choose to buy a home or buy land and build a home, get rental income annually, or put it up on the Airbnb/Shortlet service.
You could also buy distressed sale homes, or homes that have experienced huge wear and tear, tear down walls and fix it up real contemporary-nice and sell for way higher.
You could also buy buildings in highly commercialized areas and lease to business owners on a 3-5 year lease. Some real estate companies even provide crowdfunding options where you and others conveniently and affordably can crowdfund a real estate project and everyone gets continuous income from said projects while the property is held in trust by the real estate managers for all parties concerned.
The point is, there are vast options as to how you could choose to make your entry into real estate investment.
However, in real estate investment, time is of the essence, as any minute snoozed on is appreciation lost out on. It’s important to swiftly make the smart, well-thought-out move of investing after working out your finances and what it can currently afford you, as well as engaging seasoned real estate investment brands and companies to ensure that due diligence and seamless processes are what you get as you invest.
The Reverie Group with over 4 years of cumulative experience specializes in the art of making real estate investment dreams come through for its esteemed clientele, taking into consideration your unique set of financial placement and circumstances. If you’re looking to invest in real estate, get in touch with us today.
We’d be thrilled to set up a free consultation and get you started on the most rewarding and safe investment known to man.