Is Real Estate Investing Right For You? Here Are Several Reasons To Seriously Consider It

Real estate investing has created some of the world’s richest people, but for the average Joe, it might seem like a pipe dream. The reality is with a little research and common sense, anyone can do it successfully. 

If you’ve been thinking about it, but are still on the fence, here are several reasons you should seriously consider getting into real estate investing. 

1. Real Estate is Tangible and Always Worth Something

Tangible means you can touch it and it has worth. Unlike stocks that you can’t see or touch, real estate is tangible, and it will always be worth something. Even when the stock market crashes and stocks suddenly become worthless, real estate still has value. 

2. Real Estate Continues to Grow in Value

Real estate usually appreciates over time. Not only does the structure grow in value, but the land it’s built on typically does too. In fact, it’s not uncommon for land to be worth more than the building that sits on it or for it to appreciate without any structure built on it. 

3. You Have an Opportunity to Make More Money

The value of your investment is partly in your hands. You have the option of making improvements to the structure to increase its value, after which, you can rent it out for a steady stream of income or sell it for more than you bought it. 

4. Real Estate Builds Equity

The longer you own a property and pay down its mortgage, the more equity you build in the home. As the market fluctuates, your ability to build equity fluctuates, too, but as your home appreciates, so does its equity, too. 

5. You Can Leverage Your Investment Property’s Equity

The equity you build in your investment property can be used to buy or pay off all sorts of things. You can build your investment portfolio by purchasing more properties with the equity you have, pay for your kids’ college tuition, or make renovations on your property. 

6. Real Estate Sees Better Return (ROI) on Investment than the Stock Market

Investing in the stock market yields, on average, only about 1-2 percent return on investment annually. Real estate, on the other hand, sees an average of 6-9 percent ROI per year. That’s a huge difference that’s hard to ignore!

7. Real Estate Diversifies Your Portfolio

If you’re in the habit of investing your money in high-risk stocks, investing in real estate is a great way to diversify your portfolio, so you don’t lose all your money in one fell swoop if the market crashes. In most cases, real estate is a less risky way to invest money. 

If you’ve been thinking of getting into real estate investing but are still on the fence, the information above may help convince you to take the plunge and buy your first investment property.