Real Estate will always be one of the top investment choices of people who may have extra money to invest. But how about for those who may not have as much, but has the option to funnel an amount of money into real properties? Will it be worth it?
Entrepreneur Magazine published an article on real estate investments and why these are viable sources of extra income for investors. In the write-up, they cited cash flow as one of the main advantages of putting money into real property.
“Many people invest in rental properties simply because of the cash flow – the extra money that is left after all the bills have been paid. The cash flow can provide ongoing, monthly income that is mostly passive, allowing you to spend your time building a business, traveling or reinvesting in more real estate. Cash flow from real estate is stable and far more predictable than most other businesses. That’s great for entrepreneurs enduring the ups and downs of start-up life. The cash flow can help float you though the bad times and live well during the good times.”
Take a look at the rest of the online article here.
Forbes.com also discussed in one of its online articles why people should consider investing on real estate properties. Apart from being a passive source of income, the Forbes.com article says that the equity on the property is built over time, and that the investor has almost nothing to lose.
“Real estate is secured by a physical asset and is an overwhelmingly stable investment. In the vast majority of cases, an investment property will retain its value and appreciate over time. If you make your monthly mortgage payments and have the correct insurance, it is very unlikely that you will experience a total loss on a real estate investment.”
Check out the original write-up post here.
Factors to consider
The website Investopedia also shed light on the many advantages of getting into the real estate business through an investment. According to the write-up the lure of holding onto something tangible is one of the reasons why more and more people invest in properties.
“Purchasing property requires more initial capital than investing in stocks, mutual funds or even real estate investment trusts. However, when purchasing property, investors have more leverage over their money enabling them to buy a more valuable investment vehicle. Putting $25,000 into securities buys $25,000 in value. Conversely, the same investment in real estate could buy $125,000 in property with a mortgage and tax-deductible interest. Cash garnered from rent is expected to cover the mortgage, insurance, property taxes and repairs. But a well-managed property also generates income for the owners.”
The continuation of this write-up can be found here.
Investing on real properties can be one of the wisest investment moves as it pays off immediately.