Summer is a great time to relax on your porch, go to the pool, or grill with your friends. Whatever outdoor aspect of your home you’re enjoying, it’s also an ideal time to consider investing in real estate. Whether you’re looking to diversify your investment portfolio or add a continuous source of income, real estate investment has countless benefits. Keep reading for five of our favorite aspects of investing in real estate!
1. Consistency & Appreciation
Many investors’ favorite thing about real estate is its consistency. Compared to the stock market, the value of real estate is much more stable, with less notable daily changes in value. In addition, real estate is more likely to consistently appreciate. As population increases and certain areas become more sought-after, real estate continues to grow in demand. The average annual real estate return over the past 50 years is approximately 11%.
Real estate has low correlation with stock market performance, making it a good choice for those who want to diversify their portfolio. Historically, investors who have put a portion of their portfolio in real estate have been more successful than those who haven’t.
3. Continous Income
Another great benefit of real estate investment is the potential for continuous cash flow. In many types of real estate ownership, such as equity ownership for apartment buildings earning income through rental payments or loans earning income through interest payments, the investor is able to earn cash while owning the real estate in addition to when they sell it.
4. Inflation Hedge
Real estate also has the ability to hedge against inflation. Since the supply of land is limited, it holds intrinsic value. Residential land values in the United States have increased by 169% in the past 20 years. There’s a positive relationship between growth and real estate demand; as the economy grows, the value of real estate increases. In addition, growing demand for real estate both increases its value and its rental price potential.
5. Control Over Investment
When you buy a property, you have full control over your investment. From the type of property you buy, to the property financing method you choose, to making decisions about rent, you get to determine what’s right for you throughout the entire process.
Overall, real estate is consistent in holding value, it will help to diversify your portfolio, it’s a potential source of continuous income, it can hedge against inflation, and it lets you have control over your investments. For these reasons and more, investing in real estate can be a great step to take.
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WHY INVEST IN REAL ESTATE?
Home appreciation relates to a house or investment property increasing in value over a period of time. A raised value of a property can lead to the owner making a profit upon selling it or earning more income through monthly rent from their tenants. Increasing home value also leads to more equity in the home.
About Terry Chved
InvestWithTerry.com have been actively involved in the GTA area real estate investing for a number of years. Our mission is to provide quality housing for quality tenants, while at the same time providing an above average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!
Terry offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Terry.