Why Real Estate Is a Good Investment ? This is the Answer...

Diversifying your investment portfolio is essential. If you put all your eggs in one basket, you could suffer a total loss in the blink of an eye. But when you invest some funds in the stock market, other funds in bonds orand some in real estate, you increase your chances of higher earnings and fewer losses.

Many people avoid real estate investments because they think they are scary or need a lot of money to invest. Neither is accurate, and to reassure you, here are?great reasons why real estate is a good investment.

You May Feel Financially Secure

There’s not much to feel secure about when you invest in the market. But, as 2020 showed, it can change in the blink of an eye. One minute you have a significant investment, and the next, you’ve lost everything.

When you invest in real estate long-term, you know you have an appreciating asset. It may go through hills and valleys, losing some value along the way, but housing usually bounces back if you hold onto it long enough.

Many people invest in real estate to supplement their retirement income. Whether you own the property while you’re retired, earning the monthly rental cash flow to supplement your income, or you sell a property you’ve owned for many years once you’re in retirement and make a profit, you’ll increase your retirement income.

Some people feel more secure knowing their money is invested in a safe investment (real estate) rather than leaving it liquid in a cash account or investing it in the stock market.

You Can Earn Regular Cash Flow

If you buy and hold real estate, you can earn monthly cash flow renting it out, and this increases the profits from owning real estate since you aren’t relying only on the appreciation but the monthly rental income.

It may seem overwhelming to buy investment real estate and find quality tenants and manage the property, but there are many available resources to help you.

Roofstock Marketplace ?is a great resource. They not only list available investment homes for sale, but many of them have tenants with leases in place already. So when you buy the home, you instantly become a landlord. Roofstock also offers plenty of due diligence, researching you, so all you have to do is buy the property you think is best.

Of course, there’s always the risk of tenants defaulting or vacating the home early, but there’s a risk with every investment. Without risk, there can’t be a reward.

You Can Pass Real Estate Down to Your Heirs

If you want to leave a legacy behind but don’t think going cash is a good idea, passing real estate down can be even better.

Not only will you give your heirs an income-producing asset, but it’s also an appreciating asset. So they can either keep the property and let the legacy continue or sell it and earn profits.

You Can Use the Equity to Increase Your Real Estate Portfolio

A favorite way to use an investment property’s equity is to grow your real estate portfolio. For example, let’s say you have $50,000 equity in a home. You can refinance the mortgage on it, take out the $50,000, and use it as a down payment on your next property.

Depending on the value of your properties, you may even be able to pay cash for future properties, increasing your portfolio and the equity in it even faster.

You Can Force Appreciation

Unlike stocks or bonds, you can force the real estate to appreciate. It sounds weird, but it’s possible.

First, know that real estate appreciates naturally. On average, real estate appreciates 3% – 5% a year without you doing anything except maintaining the home. But, you can increase the rate of appreciation by making renovations or repairs.

Not all renovations increase a home’s value, so if you’re making renovations to increase its value, work with a licensed appraiser or real estate agent to find out the best (most valuable) renovations you should make.

You won’t get a dollar-for-dollar return on your investments, but some renovations can pay you back as much as 80% – 90% of the money invested.

The renovations don’t have to be major either. Of course, adding a room or finishing the basement will add more value than simple cosmetic renovations, but even minor kitchen and bathroom renovations can drastically affect a home’s worth.

These are the points i mention . so i think you get the some idea about why real estate Is a good investment. Refer the document and share it. Thank you.