Often times, we hear real estate as just a property – could be a house and lot, a building, a farm, or anything that occupies land and land itself can be recognized as a real estate. However, it can also be growing gold mine, which many of you don’t even know or perhaps… consider.
Real estate is one of the most sought out investments for big time players in the market. This is because you can be your own boss, have the freedom to travel while growing your money, increase your overall net worth, and having a place where you can proudly state as your home – or basically something you really own that lasts. Aside from that, here are other hearty benefits that will surely make you invest in real estate.
- Appreciation is the increase in the value of the property – it consistently happens, especially on land. There are actually two types of appreciation that every entrepreneur or investor should be aware of. The first one is economic appreciation, this one is beyond your control and relies heavily on the nation’s/region’s/state’s economy – inflation is one factor. This should not be the key element for your properties worth – unless it is a La Duquesa Property, which by itself is a fortune.
The second one, which is the key element, is market appreciation which you can take control of. This can be done by improving a property – this allows you to forcefully increase its value. Purchase a cheap property, then renovate it, do better landscaping, and make it look irresistible and you can price it higher.
- You can lease your properties and enjoy earning money without a lot of hassle or any management. You gain something just by relaxing and waiting for the next payment to come while not losing anything but time. The only risk here is how consistent your client is when it comes to paying and how will he utilize the property. And, once they’re done or once you need it back again, you will have it without any question. This is why some investors would just purchase to have it be leased or rented, and gain a nice sum. Then sell it after some time, either the same price they first purchased it or with a reasonable increase – either way, they profit a lot.
- It is a long-term wealth. No one can deny that. No matter how you may look at it, land will always be there as both a necessity and luxury – the best part, it doesn’t fade away. The building on top of the land may be gone one day; the land will always be there with good value. It is something that you can leave to your next of kin, something that’s going to be appreciated even for their next of kin. They can then decide what to do with it, sell it, lease it, build a new building on top of it for commercial use, or just build their dream house. Real estate is truly something that can be treasured.
- It is something you can reach on during a crisis. It can be one of your last assets you can truly depend on that promises an ample amount of money. There will always be buyers – banks for one is always there waiting for you to sell it (although at a lower price). This gives you security for your future when other investments may go down or insurance companies fail. Real estate is always something that you can depend on during bad times that will quickly boost you up to a good start again.