Why You Should Invest in Real Estate
When you hear the word investment, a surge of ideas comes through; there are many types of investments. Company stocks, cryptocurrency, and real estate investment are some of them. And out of them all, the latter has been the talk of the town in recent years. Are you asking yourself: “is real estate a good investment over any other portfolio?” Here are some reasons why this is yet the grandest opportunity you should grab.
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1. Real estate is a tangible asset you can maximize
There are many types of real estate property: residential, commercial, and memorial are some of them. When you enter into a real estate investment deal, you buy a non-cash asset with the plan of reselling the same in the future. In the case of real estate, you know where your property is. You can purchase a house and lot property, furnish it and resell or rent it out, you can build a commercial complex and then rent it out to businesses, and you can purchase a memorial property and resell it later at a higher cost.
2. There will always be a market for real estate investment
When talking about investments, market volatility is one of the biggest risk factors considered by investors. The more volatile the nature of the investment product is, the more likely for you to have huge gains or losses. But in the case of real estate, the market is more stable which implies that there is a small probability for you to suffer from absolute losses.
The reason for this is the fact that land is limited, and every day, there will always be someone looking for a new home or a memorial property. With that said, you’re sure to have a solid market for your product.
3. The investment value of real estate appreciates over time
If you buy equipment or a vehicle, its value diminishes over time because of depreciation. This is the reduction of the original value of the asset due to the passage of time. However, despite being a tangible property, this is not the same case for real estate properties that you can avail of as investment products.
Since the supply of land in the entire world is limited, the available portion of it that can be available for use decreases as time passes by since more people are buying their respective lots. Thus, using the logic of supply and demand, the price increases as the supply decreases. This is why a big yes is the answer to the question: “is real estate a good investment?”
4. Real estate investment provides you with a passive income
Once you’ve purchased your memorial property, you have the freedom to develop it the way you want (within the set restrictions). If you purchased a house and lot property, you can rent it out. If you bought a condo, you can furnish it and list it on vacation listing sites like Airbnb. You can even buy a few units of memorial lots and resell them whenever you want for additional income.
With real estate, you can have a passive income source in addition to your income from work or other businesses.
5. Real estate investment comes in various forms
Most real estate developers offer friendly payment terms to their clients. For instance, if the property you want to purchase costs one million pesos, you don’t have to pay the full amount outright. Many offer installment financing which is a lot easier on the pocket for most of us. Of course, if you want to pay the amount in full, you can. And oftentimes, if you do pay the full amount outright or what they term as spot payment, there’s a huge chance you’re getting a discount out of your purchase, making it a greater deal.
So, is real estate a good investment? The answer is yes. It’s a stable industry, value appreciation is certain, and you’ll always have a market for it. As with other types of investments, however, it’s best to learn more about them before jumping on the bandwagon to ensure that you understand what you’re getting into.
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