The real estate industry needs no introduction, especially to those who aim to make it big in life and earn better benefits for their investments. Some people may claim that the real estate industry is unstable and can lead to great losses. Well, this can be just a state of mind as this is not going to happen anytime in the future. The reason? Because they’re not going to create more land. And hence the prices of the properties are going to increase always.
If you’re still not convinced that investing in the real estate market is a great deal, let’s take a look at some facts about the industry:
- Attractive Income Return
The biggest feature of real estate investment is that you enjoy great benefits from your investments. No matter you are investing in a land or an investment property to give on rent, the chances to better returns are always positive. According to the experts, over 30 year period, close to 80% of total U.S. real estate return was derived from income flows. This makes the real estate market better than other investment options like stocks or bonds and tends to be less volatile than those that rely more on capital value return.
- Portfolio Diversification
Another benefit of investing in real estate market is that you enjoy diversification potential. This industry offers low and negative correlation with other major asset classes, meaning the addition of real estate to a portfolio of diversified assets can lower portfolio volatility. This results in higher returns per unit of risk.
- Lower Interest Rates
No matter what type of loan or mortgage you compare with property loans, the interest rate for property loan is always going to be lower. Lucrative loan offers are made available to help people own the properties that they always wanted to. Low-interest rates lead to low monthly payments, which means you can go for more loan amount to won your own dream home that too without paying higher EMI per month.According to the experts, the current property loan interest rate is the best available in the market. If you take a look back into the past, you will find a shocking figure of interest rates that made it really a big deal for homeowners.
- Knowledge is Free
Well, this is something that makes it a must to invest in the real estate market. You need not hire someone to guide you throughout the ups and downs of the industry. Unlike the past when the knowledge was taught by “get-rich-quick” gurus who traveled the country charging outrageous fees. With the growing technology and almost everyone having access to the internet, it is possible for everyone to have knowledge about the changing trends of the market, making investing in real estate market a must.
There are thousands of blog posts, ebooks, podcasts and more sources available to help you with the real estate market trends. Also, it is easier for beginners to get in touch with the expert investors who always want to share their knowledge about the market and share their success stories with others.
- Your Job is Not Permanent
No matter how great earning job you are doing right now, remember that the job is never stable and you may need to come out of it one day. And the reason may be anything, bad health, age or anything else. In such conditions, you would want stable income from a reliable resource and investing in real estate market is the best decision to help you enjoy great earnings even when you are not working.
And the job security is only enjoyed by those who take an active interest in gaining skills and knowledge. Real estate investing is one of the greatest ways to gain financial independence these days. So, it makes it a must to try your hands in the real estate investment