Each now and then, those trying to decide in their minds on where to invest their money, ask me if residential real estate in Rockland can be more lucrative in comparison to other business possibilities around.
My answer is always that aside from the possibility of generating significant income investing in real estate can provide the long-term benefit.
I’ll discuss five benefits in the following:
1. You Can Refurbish (to enhance the value of) Real EstateAfter purchasing an investment, you keep it for a set period before you try to you can sell it at a profit. The value of the stock will depend on the management of the company as well as the company’s success that is beyond your control.
Contrary to other traditional investments, such as stocks, for example, the rate of return are dependent on a third party (e.g. the management of the company) the real estate investment are entirely yours to control.
Although you won’t be able to influence any changes that might take place in the economic and demographic aspects, or the impact of nature-induced changes There are other factors you can manage to maximize the value of the investment you make in.
Examples include aspects relating to adding repairs, or improvements/enhancements to the physical property and tenants you allow to live in it.
If you are doing it correctly then you will see your investments rise which will result in greater income for you.
2. Real Estate Investing when done properly has been proven to be Profitable even in a recession (like that one we’re in at the moment)
It has, on numerous occasions been used in the past to provide an emergency bailout, in the wake of financial difficulties, like the ones that have been experienced by many during the recession that is currently taking place in the US present.
Many of my clients have confided to me that because of the current economic conditions they are unsure of the best avenues that they can invest in their cash. A few of them have invested using treasury bills and bonds however, they are in desperate need of some new investments.
We had lengthy conversations and based upon my experience as a real estate expert, I recommended an investment in land properties as the most appropriate and secure alternative to investment.
This is because even if all businesses fall, the land will increase in value. To bring my message home, I closed with a pertinent quote by an ex- American president:
“Real estate cannot be lost or squandered If it’s handled with reasonable care It’s the best investment that you can make in the world” — Franklin Roosevelt.
It’s not surprising that the client decided to follow my advice and sign up. It was a sensible choice!
3. Real Estate Investments Are Immune to Inflation
Placing your money into the investment in real estate that is viable will protect you from the ravages that inflation typically has on other more conventional investments.
This is because the price of real estate tends to increase in a positive relationship with inflationary pressures. This is the reason why property prices and rental rates increase as inflation increases.
The very nature of real estate gives owners the advantage of being able to alter the rates they provide to reflect the rate of inflation.
Monthly rents, for example, could be increased to help offset inflation. This provides insurance against losses caused by inflation that other financial investments are prone to.
4. Real Estate is unique in Being a Collateral that is universally accepted for securing funding from Banks
Nowadays, real estate in the forms of buildings or lands with the proper titles (i.e. Certificate of Occupancy (aka “C of O”) is the most recognizable and acceptable collateral in the USA and other countries around the world.
It is unique in the sense of protecting your interests as a borrower as well as the lender (that’s providing the loan) and ensuring that the funds are released i.e. after thorough verification and terms and conditions have been stipulated.
One of the main advantages that having a personal C of O is over the worldwide C of O since the latter (i.e. privately owned C of O) is what is required by the borrower who is planning to use it for the case of future financial transaction with a bank in Nigeria.
5. Real Estate Investment Allows the Use of Money from other people’s
Also, you can achieve this even if you don’t have the funds. All you need is to know what to do.
It is because real estate is a physical asset or an asset that is hard to acquire. It is one of the characteristics that attract investors i.e. those with capital to invest.
This is the reason why many real estate properties are purchased using debt, unlike traditional investments like stocks, which aren’t tangible, which is why they are perceived to be riskier to invest in.
Real estate investment could be made by using mortgage financing or cash. In the latter scenario, the payment can be that they allow for the repayment of low amounts that are made by the owner or a willing third party.
The payments will be made on land which will increase in value for the duration of these payments, and possibly even after. It also increases faith in those who finance the purchase, knowing and ensuring that the investment they make is secure.
It’s no wonder that real estate investment has been thriving for many years!
(A QUOTE OF ADVICEAlthough the benefits are listed I continue to advise potential clients that diligence is a vital condition for achieving success.
Do it yourself or employ professionals from the industry it is vital to be cautious and equip yourself with pertinent information and training.
This is something I advise my clients to keep doing every day to help them make informed decisions when investing.