One of the most popular investments in the world is real estate, and for good reason. It is viewed as one of the only investments that nearly always appreciates in value. Despite this investment category being so widely known, many people are still hesitant to jump into this sector. This is because most people are unaware of the many advantages it provides.
More hands-on, less uncertainty
Many people fear that at any moment, assets that they have tied to the stock market could be affected by a crash, meaning their initial investments could essentially disappear overnight. With real estate investing however, investors have a physical asset to safeguard against potential losses. In addition, rental income provides returns on a monthly basis then people can depend on, as opposed to having to consistently buy and sell stocks and bonds in order to realize a profit.
Reliable source of income
Many investments, although they can be profitable, follow a structure of money given up front, followed by years or decades of waiting until a return can be seen. For investors who don’t want to see their capital held up for long periods of time, real estate might be the right idea. With real estate, after the initial up front investment, rental income can provide a consistent and reliable financial stream that can be counted on to cover monthly bills. Few other investments in the world have this same benefit, which is what makes this one of the most attractive industries in the world. The income also allows the owner to reinvest these funds into other properties which can in turn be used to grow their monthly income stream even more.
Rent can be used to pay mortgage
Most real estate investors don’t have enough cash on hand to outright buy a rental property. Because of this cash issue, many people end up taking out a mortgage to initially acquire properties Luckily, investors can collect monthly rent from tenants living on the property, sometimes earning more than they actually owe on the monthly mortgage payment. This means that the mortgage can be paid down even faster than anticipated and before long, the investment property will be outright owned by the real estate investor.