Many people avoid real estate investments because they think they are scary or need a lot of money to invest. Diversifying your portfolio is essential. If you’re thinking about investing in real estate, here are some reasons you should consider it, even if you’ve never invested in real estate before.
Unlike stocks or bonds, you can force real estate to appreciate. You can do this by renovating. On average, real estate appreciates 3% by maintaining your home. Making renovations or repairs can ultimately raise the value of your home.
With real estate, you can put down a fraction of the home’s cost and invest in it. That means with good credit and stable income, you may be able to invest just a percentage of the home's value and “own” it. As you pay the mortgage down throughout the years, you hold more of an investment, increasing your rate of return as well as the natural appreciation of real estate.
Like any other investment, there are pros and cons to real estate investing. Understanding those can help you make the best investment. Being knowledgeable about all sides of the investment can help you make smarter choices and help protect your investment.
Buying is still a better option than renting. Real estate consistently increases in value over time and outperforms other investments. While the money you put into a rental essentially goes into the pocket of an investor. Your payment is also locked in for 30 years, when your rent can go up depending on what’s going on in the market.
If you are looking to invest in real estate, we have some of the best agents in the country! We are more than happy to help you with any and all your real estate needs. Let us know how we can change your life today!