Investing in real estate can be intimidating. I get it. Owning a property has always been associated with status and wealth. People perceive that you should have a solid background in real estate or need a massive amount of capital to start investing in your first property.
This is a common misconception that can stop you from investing in real estate and achieving your financial independence. But let me tell you the top 3 compelling reasons why you should start investing in real estate now:
1.Real estate increases your cash flow
Real estate gives you the ability to generate cash flow for yourself even when you still have your day job or your business. One of the major ways you can make money from real estate is to open the property you have acquired for lease. Cash flow is the difference between the amount of rent you have charged your client and the expense you have incurred in maintaining the property.
A stable monthly leasing income is a good form of passive income that provides you with long-standing financial security.
2.Real estate appreciates value over time
Property values always appreciate over time. The value of the house you are residing in right now does not remain the same, especially after a long period of time. You can gain a massive amount of profit given the right investment and timing. Leasing fee also tends to increase with time, leading to an increase in cash flow.
It has been proven historically that the longer you keep your properties, the higher returns you will gain. The real estate market always recovers even from a crisis.
The prices of properties always come back to normal or even increase even following the most uncertain times. This trend can be observed just recently after Covid-19 hit the economy of the entire world. You can see a huge development in the real estate market in Dubai and around the world even after the global health crisis.
3.Real estate allows you to diversify your investment portfolio
In other forms of investments, like the stock market, the risk of losing your capital is inevitable, however, the control over your investment can be increased when it comes to real estate. Real estate property is a tangible asset that can be used as leverage to benefit from various revenue streams while taking advantage of capital appreciation.
If you invest your money in stocks and at the same time decide to branch out into real estate investment – you will lose the risk of losing all your money if one industry shrinks by diversifying your
investments.
“The Perfect Time To Invest Is Now”
So, whether you have just begun earning your monthly salary, or have been thinking about where to put the money you have been saving for your retirement, you can always consider real estate as a valuable alternative to start investing.
And as they always say, “the perfect time to invest is now” because the sooner you start, the higher return you can potentially gain.
