You may have seen a lot of jargon about markets and diversification in portfolios when trying to look up why you need to invest in real estate. Today, I’m removing the jargon and giving you the facts.
1: You Control Your Investment
In other investments such as bonds and stocks, your amount of control is fairly limited, as it is reliant on the changes in the market. Your control is limited to deciding when to buy in and when to cash out. In real estate, you have a fair amount more power over your investment. You could go after the high risk investment of taking a fixer upper and flipping it for a large return as well as sell when needed.
2: Real Estate Investments Retain Value
Value in investments can be tough to retain as the market is always going up and down. The housing market is one area of investments that tends to stay relatively stable over time. In fact, you’re more likely to see the value of your house go up with time, especially if you do massive renovations that improve the home’s value.
3: A Stable, Passive Income
A house is one of the best ways to make extra money on the side as you can turn it into a rental property. When done right, you will still be able to pay off mortgages and other expenses while having a little extra money come in every month that you can use to spend on yourself or other ventures.
4: Make Money While Invested
While with stocks or bonds, you only see a return on investment after you’ve withdrawn your investment, real estate allows you to make money while still invested. Whether through renting a room or hosting events, you can add a bit of cash before you sell, which can be put back into your investment.
5: A Home To Call Your Own
Let’s face it, we all have a dream of owning our own house one day and investing in real estate can help you do that. Think of it as your own project that you get to decide what to do with. You can remodel the kitchen, create a garden, get a few pets, or set your roots down and start a family. The options are nearly limitless.