When it comes to investing, people often look to stocks or corporate investment strategies, but real estate offers a surplus of opportunity. Not only is it an option, but it’s also a smart alternative to other investment strategies given the stability and long-term profit it offers.
High Returns with Less Volatility
People often turn to the stock market for a ‘get rich quick’ scheme while overlooking property’s potential to make money as well. The stock market can be unreliable though. Luckily, the real estate market tends to be easier to gauge and more stable in the long run.
A Value Increase is Inevitable
Properties appreciate over time. While it may not multiply rapidly if you find yourself in a position to wait, real estate appreciation offers you an opportunity to build in value with very little work required of you. As Mays Kuhail says, “Real estate appreciation is the increase of the value of an investment property over a specific period of time. The current trend in the US real estate market is that property prices are continuing to rise, which means that your rental property will definitely appreciate in value.”
Positive Cash Flow
With rental opportunities, you can nearly guarantee that every month ends in the green. As Erik Carter says, “With stocks and bonds both yielding about 2%, one of the main benefits of real estate is the ability to generate significant income without having to sell your investment. It’s possible to generate high single to low double digit returns on your cash even with a mortgage.” Therefore, if you have the time to dedicate to it, you can make a solid profit when compared to other expenditures that don’t necessarily pay off long-term.
Cash flow doesn’t take as much time as many think. In fact, some investments create an immediate income for investors. As described by Forbes, “For example, when you purchase a turnkey real estate investment, the property is completely renovated with a quality tenant in place. You receive your first rent check at the end of the first month.”
Real estate provides variety for investors too. While the stock market has it’s obvious benefits, there’s something to be said for the stability of real estate. The point is though that just because you invest in stocks doesn’t mean you can’t invest in another area. In fact, a healthy portfolio usually doesn’t have one without the other.