9 Reasons To Invest In Real Estate

9 Reasons To Invest In Real Estate

Traditionally, assets are increased in several different ways. The financial world has alerted us to the risk of investing in stocks and funds in recent years and the traditional savings account contributes next to nothing. 

You might soon have to pay more tax on your investment income. The solution? Invest in real estate. Even in times of economic and financial crisis, real estate investments are often profitable. The value of your investment capital increases in the long term and your real estate can generate income itself. In this way he kills two birds with one stone. The result? Financial security and peace of mind.

1. Investing in real estate is more convenient than saving

The interest on your savings account is not very high and, depending on the economic situation, inflation is sometimes higher than the fixed-term return. One of the best ways to put your savings to work is to buy an investment property. With a good purchase you will see capital increases in value and rental income will fill your bank account.

2. With Investments in real-estate you are armed against week currencies

Many currencies are hit in times of crisis, making them worth less internationally compared to stronger currencies such as the euro or the dollar. Properties are generally appraised and valued in dollars or by comparison with the international or regional market. Invest your savings quickly and safely. By investing in real estate you do not have the ups and downs of the local currency and your assets are insured. In addition, you can earn a good income from a monthly rent, which is another advantage of investing in real estate.

3. Investing in real estate yields extra income when renting out

Have you already invested in real estate? Then you know that you will win double, because your investment property will increase in value in the long term and because you can enjoy a fixed monthly rental income. The average annual return of a long-term performance property is 7 to 8 percent per annum (calculated with international currencies, rents in USD).

4. Investing in real estate: a safer investment than the stock market?

Share prices fluctuate widely and the financial sector is supported by a range of new investment products: complex systems with uncertain or minimal returns. So many people choose to invest carefree to secure their future with real estate investments. Of course, this type of investment is a bit higher in the beginning, but after owning two or more properties, you will see that your wealth grows faster thanks to rental income and the value of investment properties also rises. long-term.

5. Investing in real estate: goodbye to unstable gold and commodity prices

Investing in commodities such as gold and silver is also a risk, as they are highly volatile. In the latter case, the price of gold and silver dropped dramatically. Even specialists estimate that it is difficult to say which factors influence the price. For laymen, it's all guesswork and there's not a very solid foundation for retirement unless you dig really deep into the markets, which takes more time than investing in brick.

6. Invest in real estate instead of retirement savings

Saving from pension or life insurance or group insurance are reliable investments in the future, except during a financial crisis! Suppose your bank or insurer is in a difficult situation, then it can be very expensive to go to another insurer or bank. Do you want to leave some capital to your loved ones? Then it might be not a choose to also invest in real-estate.

7. Invest in real estate in addition to your retirement

We already know that the minimum pension or even the pension you receive after reaching a certain age is unlikely to meet your needs. The aging population and the increase in life expectancy are bad news for the compulsory pension system. That's why it's best to take care of your old age in a safe way that gives you the security you deserve - with extra rental income. Your best guarantee of a dignified pension and a carefree pension.

8. Invest in affordable real-estate? Start investing in good real-estate.

Do you want more returns on every investment? Then it can be a viable option to participate in the pot sale, which has a great advantage. On the completion of the work in general, he has an immediate profit when he sells the completed department. You can than reinvest that money in another property, and so on.

9. Investing in Real Estate: Park Your Money in a Parking Lot

Another very stable real estate investment? Garages and parking spaces. Since most cars are stationary more than 90 percent of the time, they always need a garage or parking space. Public parking in major American cities is only expected to increase. In the future, you will get an increasingly higher return, both for the rent and for the value of the parking space itself. Another advantage of investing in garages and parking spaces is that maintenance costs are kept to a minimum.

Are there risks?

Yes. Although most rich and successful people, think Robert Kiyosaki or Donald Trump invest in real-estate, Investments come always with risks. There in never a guarantee that you will be successful right away. It still takes work, commitment and time to build success. So please before you start investing, please make sure you are aware of the risks and make sure that the particular deal that you want o make is the right one! So yes there are risks, but that shouldn't scare you away from becoming a real-estate investor.

About the author:

Hello, my name is Ron Hoekstra and I am the founder of The Liberty OnDemand. I hope you like my content, and if you want to know more about me, please read more here or subscribe to my newsletter where I will keep you up to date with new posts and other useful content.

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