Investing in stocks is often the first investment strategy that most people consider when hoping to grow their nest eggs. Stocks, bonds, and mutual funds are commonplace discussions for new investors, but these avenues are not the only option for making a return. If you have money in the bank that you are looking to grow, I recommend you seriously consider real estate investing, and here is why.
People will ALWAYS need houses
Real Estate is a hard asset— meaning it can be touched, seen, and felt. Population statistics show continued growth, year-by-year, with more individuals in need of single-family homes. The demand for these properties, as well as apartments and condos will remain.
Due to the constant demand for homes, an investor’s positive cash flow should be steady, whether one determines to sell or rent. Real estate is a solid option compared to an ever-fluctuating stock market, where demand and changes are less predictable
REAL ESTATE INVESTING REQUIRES LESS LEARNING THAN STOCK INVESTMENTS
Understanding rental figures and concepts in real estate are much less complicated than reading a full-blown stock market annual report. Real estate is “a dumb man’s game; very simple and easy to understand. In the stock market investing, one needs an entire degree to know what the facts and figures mean! In real estate, once you have a firm understanding of the major concepts, the remainder of the information makes sense.
Real estate is the best option to keep up with inflation
The real estate industry has a strong track record against rising prices and the occurrence of inflation. Rental rates offer a protective shield against rising prices. As inflation increases, so does home prices and the cost of rentals. If you are smart and choose a fixed mortgage payment, if inflation does occur, it will undoubtedly yield significant benefits over time. In contrast, stocks do not have a direct link to inflation that real estate experiences. The stock market just will not offer the equivalent protection that property does when inflation hits.
In summary, it’s easy to see why real estate is a viable option as an investment strategy, and these are only some of the many advantages real estate investing has over stocks, bonds, and mutual funds. For those hoping to have a steady investment that will assist in receiving a tidy profit every week, real estate is a safe and profitable bet. Real estate investments offer serious power over a stock portfolio. It’s time to analyze your market, find a steal for an investment, and watch for the steady influx of cash!