Six Reasons Why You Should Consider Real Estate Investment

There are many considerations to make when determining just where you should be investing your money. One great place to invest nowadays is in real estate. Investing in real estate has many advantages, and the following are six reasons why you should consider real estate investment.

Many People Prefer Houses Over Apartments

There seems to be a stigma associated with renting an apartment when compared to renting a house. Regardless of the reason, the fact that such a stigma exists means you’ll be able to benefit as an investor, as people will be less likely to make a step back from renting a home to renting an apartment.

Tenants Prefer Private Landlords To Property Management Companies

A tenant renting through a property management company means that they aren’t sure exactly who or how many people have access to their home. Some tenants feel as though the larger companies lack the reliability that a private owner can provide.

Also, many tenants have lease-to-own in mind and know their chances of outright purchasing a house after renting it are much better when going through a private owner.

Real Estate Is A Fantastic Long Term Investment

Even though there have been crises  in recent times, real estate investing has always proven to be a rock solid long term investment plan. While it may sway some in the short term, looking at the market across the past several decades shows just how solid it is.

There Have Been More Frequent Foreclosures

A large amount of homeowners were displaced because of all the recent foreclosures. This means that there are tons of renters in the market. This means that it is an ideal time for real estate investors to purchase rental properties and not have to pay out the mortgage payment.

Diversification

Investing in real estate also brings the great benefit of diversification. The real estate market has a very low and oftentimes even negative correlation with some of the other larger asset classifications. A portfolio with real estate is often one with a lower level of volatility and one that provides a much higher return for the amount of risk.

Use The Rental Income

One of the more unique features that come with investing in real estate is that you can use the monthly payments that your tenants pay to you towards the mortgage payment. In many cases, the amount of rental income that’s received from tenants is enough to pay for the mortgage payments as well as any other expenses associated with owning the property.

Real estate is an ideal asset to invest your hard earned money in. It’s important to work with professionals and understand the housing market in your area before investing in real estate.

Informational credit to Jakob Pek Fund.

Tags: Real estate, Real estate investing, real estate investment, Real estate investment trust

Category: Real Estate