Some years ago now I bumped into Radha Singh, an old school friend and now a real estate guru, at that time I was looking into places where I could invest my money and I had been considering making real estate an option. After along chat with my old school buddy I decided that I would indeed invest some of my cash into a small real estate project and ever since I made that decision, it has bore a great deal of fruit.
If you have any thoughts on investing in real estate but aren’t sure if it is for you, here is why I enjoy it so much, hopefully this will inspire you to make the leap.
Unlike with stocks and shares, when you invest in real estate you can actually see what you have invested in. On a personal note, I like being able to look at a building or a property and know that my money is sitting right there. I have invested in other avenues in the past but none of them physically represented my money quite like real estate does.
The real estate market is incredibly stable and even when it does fall, it will always bounce back again. Compare this to blue chip stocks which fluctuate up and down with worrying regularity and you will see just who perfect the real estate market is for risk averse investors. On a personal note, when I began investing, I never had ideals of getting rich quick and so this stability in the market allows me to maintain my patience with my investment.
Another reason why I enjoy investing in real estate so much is that there are a couple of different ways of making money from this kind of investment. I have decided to buy properties with the idea of renting them out, this brings me a steady monthly income. Should the properties which I own grow in price, above the 15% mark then it is likely that I will sell them but I have made it so that this decision is my own.
Alternatively you could try to flip houses for a profit, this involves buying at the bottom end of the market and selling them quickly for a strong return.
The reason I opted against this strategy is that I didn’t feel confident enough with my knowledge in the real estate market. If you are knowledgeable however then you can make great profits from flipping.
My next foray into real estate will be an investment in some commercial property such as an office block or factory units, I plan to take what I have leaders from the residential side of things and push to make even bigger profits on commercial real estate. The real estate sector has been helping people to make profits for many years and if you are interested then why not put your money where your mouth is and get investing!