1. Potential for Increasing Value - Real estate is a tangible asset that can often increase in value and provide long-term returns over time. I bought my first property in 2020 during the pandemic. It was a 3 unit multiunit building. I invested additional capital into renovating all my units by upgrading my kitchen with granite counter tops, buying new appliances, improving my bathrooms and giving a fresh coat of paint. I bought the property for around a quarter of a million and now 2-3 years later the same property is worth close to half a million dollars.
2. Diversification - Since real estate is not linked to the stock market, it can help diversify an investor’s portfolio, which reduces risk and provides stability. You always hear financial advisers say "Try to diversify your portfolio, " in essence, I try not to put all my eggs in one basket. The stock market is a great way to generate income however it can also be an outlet to lose a lot of cash. Investing in real estate in my opinion was a safer alternative to add to my investment portfolio.
3. Passive Income - Investing in real estate allows for regular income from rental proceeds and other sources (such as property appreciation). Yes. Passive income is what we all want. Real estate allows your money to work for you. Don't get me wrong, there are other headaches you will get from managing tenants, however receiving a steady positive cashflow always changes my mood.
4. Using Leverage - Real estate investing gives investors the unique opportunity to use leverage and access capital they may not be able to tap into through more traditional investments. HELOC is a great example as to why real estate is one of the best forms of investing. HELOC & CASH OUT REFINANCE are alternative methods that allows one to get access to capital from an estate. Once your property has generated a substantial amount of equity, any of these processes will allow you to obtain cash to use for other investments or personal projects.
Comentários