Investing in real estate. Why is it worth it?
Investing in real estate is beneficial for many reasons. Although it requires a lot of research and sometimes can hide bad deals, it is considered one of the best investments a person can make. If the right steps are followed and a proper assessment of properties is completed, it can lead to a very high profit.
1. Why is it worth investing in real estate?
It’s a tangible asset
Investing in intangible assets like bonds and stocks means that the investor doesn’t really own anything real, apart from a piece of paper. If the stock market is plummeting, then the investor loses all their money, and nothing is left behind. Investing in tangible assets on the other side means that no matter how much fluctuation there will be in terms of the value of the asset, there will always be physical evidence of that investment. In the end, tangible assets like real estate never lose their value. It will always be worth something. And if the right buyer is found and a proper deal is made, it can be sold at the same or a higher price compared to the initial investment.
Yields a stable monthly income
Investing in real estate is a great way to maintain a stable monthly income or increase your already existing one. Whether you invest in residential spaces or commercial ones, you can always choose to rent them to third parties, thus creating a continuous cash flow. The only risk that exists is choosing tenants that aren’t disciplined in terms of paying their rent every month. It is advised to check their payment history before closing the deal. This way, potential problems are avoided, and a steady cash flow is secured.
Investing in real estate also provides diversification in terms of one’s sources of income. Having alternative sources of income can provide support in times of financial difficulties.
Investing in stocks or bonds doesn’t offer monthly cash flow. The money is usually committed and can only be released to the investor once they sell the asset. In contrast, investing in real estate can generate a steady cash flow just like passive income.
Passive income refers to the monthly amount that one receives without having to work or invest a lot of time and labor. It is generated by renting one’s property and collecting the rent from the tenant.]
Protection against inflation
Investing in real estate can also provide protection against inflation. When there is inflation, the prices of all products and services rise. The same happens with real estate and rents. As a result, the owner of a property can support themselves financially by renting out their apartments at a higher price or selling it at a much higher value. Therefore, not being affected by the overall increase of prices of all goods.
Good return on investment
If the right property has been chosen and the location is strategic, usually appreciation occurs. Meaning that the property increases in value and leads to a high return on investment. However, the investor doesn’t have to wait for this appreciation to occur. They can increase value faster by buying a less valuable property and renovating and improving it, thus creating a higher return on their investment.
2. How can I ensure that my property investment will bring profits?
While investing in real estate is a beneficial process that can lead to a lot of profits, it is also time-consuming as well as tedious. Especially if there is not enough knowledge and experience. It is important that when one invests in real estate, they follow certain steps correctly to avoid a bad deal.
Progreece is here to assist you with exactly that. With the help of our highly trained staff, we undertake the entire process so that our investors simply deposit the money and no longer must worry about their investments. We evaluate which areas of the city are the most strategic ones, with the best growth potential and efficiency. We manage the renting process and find the most reliable tenants. Finally, we are completely renovating the properties, so they rise in value and appreciate in the long run.