“It’s tangible, it’s solid, and it’s beautiful. It’s artistic, from my standpoint and I just love real estate.” – Donald Trump
Real Estate Investing
While growing up I would always hear my parents say that the best investment is investing in a house of your own. Today, as I have been a working professional I realize how true this one statement is. All those students and professionals, who travel the world for either studying or later work, will definitely agree that all the years they stay outside they spend a major chunk of their earnings on house rentals. So much so that most people just buy properties after properties and earn money through the rentals coming in. Such is the power of real estate investments.
Having said this, the other reality of real estate investments is that there is no guarantee that it is always on appreciating value. There are times when the markets fluctuate and the first thing to take a hit is the real estate department. So, those people who feel real estate investments are risk-free are indeed very wrong. Without splurging too much time, let us understand that like all other investments, real estate also has its ups and downs. However, if you are keen on knowing more about real estate investments here is your guide 101 on how real estate is the correct way of investing.
Credit Score, not a Major Criterion
There are people who think that if their credit score is low or bad, then they do not stand a chance to invest in real estate. However, most of the real estate investors are actually people who have a poor or no credit score at all. Credit scores play an important part in deciding however if one is committed towards the real estate development and want to get into just that, trust me there is no stopping you.
Vitamin Capital not that Significant
Just like the myth of needing a good credit score another misconception is that one needs a large sum of money which is otherwise also known as capital. You need a small but consistent amount of money with which you can open an escrow and then go in to purchase lower-priced homes.
With these three points out in the open, we can now go about understanding how no matter what the market scenario is; you can always make money with the help of a real estate investment.
Earning the Rental Way
Most real estate investors buy out rental properties and invest in it. This way they can continue to get a return on their investment by upgrading that property and putting it up for rent again.
Buying a property that is low
The second most assured way of investing in real estate is by purchasing a property that is already depreciating and under market value. This may seem like a bad choice however, plenty of real estate investors only specialize in closing deals and buying out undervalued properties.
Capitalizing per unit rate
Suppose a real estate investor has a property that has 4 separate rooms, and this he later puts on rent individually to different individuals or families. This way you increase your monetary returns and on a single property, you get different points of returns.
Once you buy a property it is at your disposal to decide what and how you want to use it. One of the ways of earning a return on investments is when property and real estate dealers rent out their properties to businesses. This type of rental is marginally on the higher side and is also a safer way of investing.
Less risk and more returns
Investing in the form of real estate has a lesser risk factor than compared to investing in the stock market. Where on one end the stocks are volatile in nature, whereas real estate is not that volatile and will not make you lose all your investment the moment the market crashes. There will be a considerable loss but it won’t inflict a negative impact on you.
Reasonable and attractive Returns
One of the best features of investing in the real estate is the fact that no matter how much the market fluctuates, there is always a steady and stable return without noticeable dips when and if the market crashes. In short, the moment you have invested in some sort of real estate you may make a little less, however, one will not face complete loss.
Just like everything else, there is always a considerable risk, however, no matter how much the rate of inflation may be people will always need a roof over their head. The demand for a property for residential and business purpose will always persist and so there will always be a demand for real estate.
This is the major reason why investing in real estate is the best way of going forward after having consulted people who are well known and conducting in-depth research on the same. So if you have a thorough idea go ahead and take the wise decision of investing in real estate because the price of land with a property built over it will always hold more value compared to everything else that you own and buy. Gold depreciates over the years and so do your cars and other expensive gadgets; however, the one thing that will always boom and remain constant is the appreciating value of land and anything that is built on it. The only thing that one needs to take care of is to read all the documents carefully and then enjoy a life filled with high monetary returns.