Real Estate! The final frontier for investment! Well, on Earth, at least!
Real estate is probably one of the wisest forms of investment one can make. It’s a great way to diversify your income or business profits. It’s like the gift that keeps on giving. If you’re an entrepreneur or someone who would like to have a steady income post retirement, then you most certainly should read this. Let’s take a look at the benefits of investing in real estate.
It’s as simple as that one word. Think about it! You can buy a property as an investment and rent it. Once your bills are paid off, it will come across as real income that comes in every month. You won’t have to worry where your next rupee is coming from. It’s steady and an unwavering constant in the real world. You will never know how this income will help you with your finances in the future. A good real investment will keep you afloat in the worst of times. Make the right decision!
2. Pay It Forward
The greatest thing about investing in property these days is that you can get a loan to buy it and then rent it out. If you look at it in a more factual manner, your tenant will be the one paying for your loan. That’s the makings of a smart investor. Why pay for it yourself when you can get someone else to pay it for you? The property will be your asset for several years to come, depending on the type of loan you availed from the bank and an asset like that will never go away. It will only just get bigger and better with the rise in property values.
3. The Theory of Value
Just like everything else, the value of your property is going to go up. It’s not just fruits, vegetables or cars. The thing about real estate is that it’s not a short-term investment. You’re in it for the long haul. So, keep this in mind when you’re investing in any property – do your research well. Avoid the common mistakes investors make and invest right. It’s rare that a real estate investment will turn out be a bad thing. Over time, it will appreciate and you’ll end up the big winner at the end of the day.
4. Inflation Fighter
Inflation is where prices increase because of the value of money is decreasing. It’s a scary thought. Milk, candy and other edible substances could skyrocket in their value. But real estate will mostly remain the same. But here’s what will be the added benefit – the rent of your property will also hit the roof. Because like everybody else, you have to meet the rising costs. This will result in an increase of your cash flow. Imagine if you still have a mortgage/loan against the property and your rent is slowing paying that off, the interest rate doesn’t go up. Therefore, you save the extra money in your bank account. It’s a win-win deal.
5. Master of your fate
William Ernest Henley’s poem Invictus says, ‘I’m the master of my fate, I’m the captain of my soul.’ The poem is essentially about taking control of your destiny and not letting anybody else tell you differently. When you own a land or built property, it is yours to do what you please with it. You are neither answerable to your house owner or the government. Well, that’s assuming you pay all your taxes. The point is that owning a property gives you the power you never thought you had. It’s your responsibility and no one else’s.
6. Next Generation
This is actually very important. Real estate is not just your retirement plan. It’s about your children, grand-children and your future descendants. You may not have a lot of money in your bank account, but this is something you will definitely pass it down to the next generation. It will be your legacy. You will not just be remembered in spirit. You will have something to show for it.
Like a plant that needs to be grown or a business that needs to be developed, so too is your real estate. None of the points above will have any meaning if you don’t invest time to carry out a thorough research before investing. Invest in real estate and relax throughout the journey of life.