Many people manage to gather a surplus of money throughout their lives that they want to make profitable. However, they are paralyzed because they do not know what to invest in; they do not know how to invest it, making them averse to risk. There are various financial products, such as mutual funds, shares in the stock market, among others, that promise greater profitability according to the degree of risk you want to assume; however, none guarantees it, and what is worse, we depend on the management of "experts". Many of us who have ever dared to invest in these products know that the highest profitability was in our illusion, rather than in the profitability obtained if there was no loss and after a considerable period.
After analyzing several alternatives, we conclude that investing in Real Estate is the best option for 16 reasons that we list below:
Less volatile, more secure
Property is less prone to short-term speculation by different national or international events than paper assets. Likewise, the long time expected to liquidate a real estate asset significantly reduces market volatility.
There is always demand
The population continues to grow, and housing is vital to buy or rent. Additionally, there is economic growth that attracts an attractive foreign population for this business.
It is a flexible investment
It can be used as a long-term investment in which you can sell your property in the end with a considerable capital gain. It can be used as a medium-term investment in which with the rentals you can obtain a monthly income, and it can also be used as a short-term investment in which you can buy a property in plans and sell it finished, or a property at an opportunity price that you can sell at a higher price for remodelling.
The rental is profitable
The profitability in real estate rental is long term and sustainable and generates revenue with minimal operating cost, making it a business option with great potential.
It is financed
A large number of financial institutions are willing to offer mortgage loans with different conditions and rates. Additionally, governments have many laws and initiatives to promote the purchase of the real estate, such as tax exemptions depending on the location of the property, among other factors.
Investment opportunity for every budget
You can buy from a parking lot, lot, apartment to a house, office or building. There is a property for every budget—the areas, footage, age and characteristics of each property influence the price.
Knowledge at hand
Unlike financial products, in real estate, you do not need to be an expert to be able to invest, the data is easily found in the market, and with a primary commercial criterion, it is defined which property to buy to rent and/or later sell in the future with a capital gain.
You have all the control
The success of your investment in real estate depends exclusively on you and on variables that you understand. It does not depend on any financial expert and on variables that you do not know.
Leverage for you
Real estate allows banks to lend you large sums of money for putting the property as collateral.
It is a tangible good that you can use
It is an investment alternative, on an interest that can be seen and is accurate and that given the situation you can always have, use as a home, rent, rent partially, for days, months or years.
Other people pay for your investment
In addition to the fact that most of the property's value can be paid with a loan, tenants subsidize the rest of the investment with their rent payments, making properties one of the most affordable types of investments.
Benefits for the development of the area by others
The investments of others in infrastructure, roads, shopping centres, businesses, schools often provide employment opportunities and increase the value of homes around, simply make an area a better place to live. All of this increases the value of your investment without having to spend a penny.
Convenient for retirement
It is a good income alternative for retirement. While the asset ends up revaluing, it provides a monthly income without making significant expenses.
They are inherited assets
After several years, you can inherit to your children real estate with a considerable and tangible value. In the case of financial products, such as shares within companies, after an extended period, their value is uncertain.
It is easy to handle when there is a bad situation
The instalments of a loan to buy a property are maintained over time. If the property lowers its value, one can retain it until its value recovers or increases. The loan instalments will remain the same. If the instalments become difficult to pay, there is always the option of selling the property with a mortgage, recovering if not more, and a large part of the investment.
Seeking advice is straightforward
There are several real estate agents registered with the Ministry of Housing, with enough training and experience to provide you with all the support you need to implement your business. They will give you the advice you need, they will help you search for the ideal property according to the budget you designate, and they can even get you the buyer or tenant.
All are excellent reasons to start investing in real estate, and if you still have doubts, it is enough to realize that great fortunes have been forged from excellent investments in that area. We encourage you to take the first step. Just do your due diligence when looking at any property for sale. Make sure you know everything about the property and the seller. Look for things like any outstanding payments or mortgage or loans against the property. And this is not limited to simply buying a property. If you want to make a profit by renting a property then always check the rental history and credit score of potential tenants.