Real Estate is the BEST investment you can EVER do!
There are tens of reasons why to invest in Real Estate, here are – in my opinion- the main 3 reasons;
Rental properties normally appreciate in value with inflation. Increased value can mean sale and reinvestment in higher value properties, or provide an equity line of credit to use for other investments. This is the second, and a historically proven value component of real estate investment return.
Using leverage provides greater returns. Using down payments to buy properties and bank fund the rest of purchase price can greatly increase returns. for example, you put $20,000 down to buy $100,000 property, after some time the value of the property gone up 10% and sold for $110,000. You actually made 50% return ($10,000 return when you put $20,000). It is simply use Bank’s money to leverage your investment.
Of course, all leverage involves risk, so the successful investor must understand how leverage impacts their real estate investments.
3. Inflation Hedging
The inflation hedging capability of real estate, stems from the positive relationship between GDP growth and demand for real estate. As economies expand, the demand for real estate drives rents higher and this, in turn, translates into higher capital values. Therefore, real estate tends to maintain the purchasing power of capital, by passing some of the inflationary pressure on to tenants and by incorporating some of the inflationary pressure, in the form of capital appreciation.
Investing in real estate is rewarding but it needs education and proper planning through the finding, financing, buying, renting and owning your first investment property. Investing plan is different from person to another, it has to be tailored to suit your financial situation and fulfill your needs… So -unfortunately- there is no one answer about how can you start…