Real estate has been a knocking in recent months, but it still stands as the top choice for people when it comes to investing in the best long-term investment option to achieve great benefits. And the reason here is simply – no more land is going to be created anyhow.
Along with this, there are many other reasons why investment real estate is the safest choice. We’d like to mention a few of the reasons in this article.
“Safe as houses” is a well-known phrase for the real estate investing. And it stands true in every form. According to researchers, Australian real estate industry has increased in value at a rate comparable to that of the share market since 1926 – an average of 11.4% per annum. While there have been a few times when the market seemed down, but it never caused any loss for the investors. It’s done so without the volatility of the share market, too, making it an all-around safer investment.
The risks associated with real estate investment are much lower than the investment in shares.
Easy to get finance
It may not feel like it when applying for a mortgage, but lenders like property a lot. In fact, home loans are considered as the major part of any bank’s business model and offer to 95% loan to the property value and at lower interest rates than any other asset class. This makes it easier and cost-effective to borrow to invest in property than in any other asset class.
There have been instances where people became millionaires and billionaires with investment in real estate than possibly any other industry. And because the population is growing at a super-sonic rate, the prices of the land are likely to be increased in the future as the supply of land is limited. This makes sense that the demand will grow and returns to your investments in the real estate will continue to yield great in the long term.
If you are willing to get monthly income with the property you purchase, go for the rental property investment options as it can generate for you with almost 100% certainty. Once you own a rental property, you are not at the mercy of volatile market forces capable of diluting your net worth overnight. It assures you of passive income that will keep increasing over time – along with the capital value of your home.
Real estate investing, all over the world, is considered as the first choice of investors, not only because it brings great returns to the investors, but also because it gives you the monthly income. It is the safest investment option – and will continue to grow in the long term.
Investment in real estate is the safest possible option for those who aim to multiply their savings while enjoying tax benefits. If you want to use real estate to build a steady source of retirement income, be patient and invest in the best option that you think will grow in the future. Look for the upcoming future plans and invest in the best land you can get in minimum budget.