(ThyBlackMan.com) Real estate has been a cornerstone of most gigantic economies for a very long time. If you think about it, it makes perfect sense. It’s safer than plenty of the other options and it also offers a greater reward in the long run. While the real estate business suffered some major setbacks after the global crisis of 2008, the chances of that happening again are slim and the world market has already recuperated. As a result, real estate as a business has grown in the past few years exponentially.
These are 4 reasons why real estate will always be a good business.
Better return, less volatile
Real estate as an investment often compares with the stock market. Truth is, real estate will always be the more logical choice of the two if you had to choose. Risk of loss is marginal in real estate because they simply rarely lose value. If things are stable in your country, chances are real estate values will continue to increase.
It’s always within your hand to sell or keep your property for as long as you want, in case you want to sell in the future when the reward is bigger. That is not the case however with stocks. There are plenty of factors out of your control and things can go sour real quick, which means they have a much bigger risk.
Diversified Portfolios
One of the coolest and most important advantages of the real stake market is the presence of real estate crowdfunding. This basically gives smaller investors the opportunity to make their portfolios bigger and more diverse by investing in the real estate market through crowdfunding.
There are a vast number of real estate crowdfunding platforms and sponsors for investors to choose from. For that reason, investors need to carefully research and read authentic ratings and reviews on platforms and sponsors before committing their money. The platform or sponsor should be good at finding great deals, tracking and reporting investment performance to investors, and providing a host of other functions for a decent price.
This didn’t use to happen in the past as most real estate investments were left to the big guys. Business owners who want to get into real estate now don’t need to go and ask one investor for a bulk of money; they can reach out to several investors who’d each contribute a smaller amount. And this is done online.
Present value
Another quite important aspect of real estate is it’s tangible. It’s right there, in your hands. The value is there for you to see and feel. Stocks, for instance, can lose value in just a second, and you’d be left with nothing tangible in your hands. Cars, electronics, gold, and so on, all could lose value with time. That is not the case with real estate; it only increases in value.
Better for your kids
If you’re looking to leave something to your kids after you, real estate is definitely where you want to start. It’s a safer investment and one that could be kept intact for long years, for your kids to benefit with after you’re gone. It doesn’t hurt either that real estate is much better for your health as an investment, because you won’t have to worry about it every day. You can’t say the same for the stock market, for instance, where you’d be constantly worrying about how your stocks did.
At the end of the day, you want to make your life easier. And real estate is a relatively easy investment that would help with that. The number of benefits coming with real estate investment outweighs the cons by a stretch. It’s always good to invest in real estate because it helps you diversify your portfolio, which is an important step in financial planning because it means the risk is spread –– in other words, don’t put your eggs in one basket. If you’re invested in stocks, then so be it, but invest in real estate as well as it’s a safer option. Doesn’t hurt either that real estate offers tax deductions on mortgage interest rates and property taxes.
Staff Writer; Paul Shaw
