Investing is essential for anyone who wants to grow their wealth and have the ability to retire at a reasonable age. The earlier you start investing, the better off you'll be in the future.
But getting started in the world of investing can feel intimidating. Do you just blindly jump in and hope for the best? How do you know what to invest in?
Real estate is one of the most popular ways to invest and grow wealth, but a lot of younger people may feel intimidated by it. They might wonder, "is real estate a good investment compared to stock investments"? The answer is yes, real estate investing is the best way to grow your wealth over time.
Here's what you need to know about why investing in real estate is a great option for people who want to grow their wealth.
1. There Will Be Monthly Cash Flow
When you invest in the stock market, you'll usually just invest and forget, meaning you will leave the money invested without taking it out for several years unless you need to. But wouldn't it be nice to have a monthly return on your investment instead of only a long-term return?
When you invest in real estate and rent properties out, you will get monthly cash flow right into your wallet. Sure, a lot of this will go towards paying the mortgage (if you have one), paying property taxes, or paying for maintenance, but there will usually always be a good amount leftover that'll go right into your pocket.
2. You'll Have More Control Over Your Investment
Investing in real estate is unique because you have a lot more control over your investment. When you invest in the stock market, you really have no control over what happens, you can only decide how much you invest and when to pull your investment.
But with real estate, you control which property you invest in and what upgrades you will make to the property. You can literally add a ton of value to your investment just by fixing up a property and making some new additions. You also have control over who you rent to and how much you will charge for rent.
Real estate investing means a lot more involvement on your part, which is great for people who do their research and put the time and effort into improving their investment.
3. Real Estate Is a Tangible Asset
When you invest in real estate, you're investing in something tangible and real. You're not investing in paper or something with no real value other than the value we have given it. Real estate is something that will always be valuable because it serves a necessary function and people will need to live in properties no matter what.
This is super important when you consider long-term investing. You never know what will happen to the value of stocks and bonds, or even to the value of the dollar. But you can always feel confident that the real estate you own will always be valuable.
4. Properties Appreciate in Value Over Time
While it's great to get a short-term return on investments, the reality is that investing is a long-term game. You want to significantly increase your wealth over time so you are financially comfortable as you grow older.
Real estate is the best way to grow your wealth over time because the value always appreciates. It doesn't matter if there is another crash in the market because the value will bounce right back up as it has since the last crisis over a decade ago. When you look at how real estate value changes over the span of 20 or 30 years, it always trends significantly upwards, which is what you should be looking for as an investor.
Is Real Estate a Good Investment? Yes, It Is!
Now that you know the answer to "is real estate a good investment", how can you get started? While real estate investing is a great option, it's also easy to make big mistakes if you don't know what you're doing. That's why you need to work with a real estate investment company that can help you find high-value properties as well as manage those properties and find quality tenants to fill vacancies.
Here at Professional Real Estate Management and Investment Services, we do all of those things plus much more. We have the knowledge, expertise, and passion to help you make an amazing investment that will bring you wealth now and for years to come. Contact us today to learn more about our investment and property management services!