People all over the world have different preferences when it comes to deciding where to invest. There are people who love stock markets, others chose real estate only, some invest in gold, and some others choose to invest in different investment funds.
All of these choices are reasonable and amazing opportunities for you to generate passive income. But for now, let’s focus on real estate and see why it is a good investment.
Your real estate portfolio guarantees your passive income. This can be especially useful when you retire. Your estates will become rental properties paying for your retirement.
And what’s more, if you invest in rental properties you will rent those out and cover your monthly expenses you will be able to do whatever you want with your time, without thinking about a 9-5 job.
It’s a tangible asset
Why is real estate a good investment? Well… that’s because it’s a tangible asset and it’s price always rises.
Let’s suppose you’ve bought a car. Is that an investment? Not really. Maybe it saves you time and makes your life a little easier. But, let’s agree that it’s not an investment. In a few years, that car of yours is going to lose its value and you will just have to get a new one.
But if you decide to invest in real estate instead, there will be no losing value. Even if your real estate is in the form of a house and something happens to it, the land will still be there with its value.
The price always rises
It is almost a fact that real estate price is always going to increase. If you take a look at the real estate prices starting form several decades and even almost a century ago, you will see the pattern. Of course, sometimes the prices stall, but they always get back on track and start rising again.
This means that whatever real estate you buy, you can be sure that in a few years you will be able to sell it at a higher price.
Real estate market is less risky than the stock market
There are many traders who have achieved greatness and accumulated a lot of income by investing in the stock market. However, we can all agree on one thing. The stock market is too volatile compared to the real estate market. With its rises and falls, you might earn a lot of money, but you are not guaranteed from losing it all.
With real estate, the case is different. Here, when you invest in a house, you know for sure that you won’t be needing to worry about the sudden changes in the market because the real estate market is more stable with a steady group.
Despite all the things that I’ve mentioned, real estate is tough to invest in, because it requires a big amount of money in the beginning. Not everyone can afford to invest in real estate so if you are not there yet start small until you can afford to buy your first property.