Copper Nails and Cement Instead of Numbers on a Screen, Why You Should Think About Investing in Real Estate
If you are sitting on some extra cash or perhaps you wish to make the most of your 401K and invest, real estate is the best place to put your money. We have long been told that copper nails, bricks and mortar is always a sound investment but can it really be better than stocks and shares? The answer is yes and whether you are looking at farm land to buy, office blocks to purchase or residential homes, history has proven time and time again that real estate is the most sensible place for you to invest your cash. Everyone of course has their say on where the best place is to invest your money and this is why those who are telling you to invest in real estate are right on the money.
Unlike trading in stocks and shares which can often be very volatile, the real estate market is very stable and although there have been large dips in the past, the market almost always rallies. This means that you can invest with a little more confidence than you would do when buying stocks and shares.
For as long as real estate has existed there has been much more demand for properties than there has been supply. This is even more true when it comes to residential real estate and all over the world there is mounting pressure on governments to build more housing. What these means for you is that you will have no problems when it comes to selling your real estate, or looking for people to rent.
Ways to Earn
When you own a property you have 3 main options for how you want to make money from it. First of all you could rent the property out which will see some cash flow coming your way, this is a long term plan which can be very profitable. Alternatively you could look to flip the property which most people do if they pick up a cheap property, give it some TLC and then sell it quickly for a small profit. The third way of earning is to rent out the property when the market is low, and then sell it when prices pick up, ensuring that you make some money whilst you own the property, and then make a big return when you sell it.
Unlike stocks and shares there will always be value in your property and the land that it is sitting on, regardless of what the market does. In some cases on the stock exchange shares can dip right down to zero and as you have no actual asset, there is absolutely nothing that you can do. Even in real estate you can protect yourself with home owners insurance that will protect you against catastrophic building damage, so you will never lose your investment.
Those who say to invest your money in bricks and mortar are absolutely right, there is less risk and potentially higher returns than any other form of investment.