You have a lot of options when it comes to what you choose to invest in. Your choice might depend on how much capital you have at your disposal, how much time and energy you want to put into the investment, and what interests you in the industry. Real estate investing has become highly sought after as many investors are seeing the benefits that come along with it, but if you are still questioning, here are five things to consider.
Real Estate Is Tangible
Many investors gravitate towards real estate as it is a tangible asset. You can see it and watch it appreciate over time (or depreciate). The tangibility of real estate allows you to easily increase its value as you have complete control over your investment. If you purchase a piece of land or property, you now have the ability to renovate, add amenities, and fix up the curb appeal. All of these can help increase what the real estate is worth down the line and allow you to get your money back, plus some once you choose to sell. If you were to choose investments such as stocks, you have no control over the growth of your investment.
It Provides a Hedge Against Inflation
Many other investment options do not fare well during inflation, causing your dollars to decrease in value. Fortunately, that is not the case regarding real estate. Real estate provides a hedge against inflation, acting proportionately to it. This allows your investment to keep up with inflation and not only stay true to the price of a dollar but also increase in value in some scenarios.
Fix&Flip Investments Let You Move On
Many real estate investors choose to go the fix&flip route regarding their properties. This entails purchasing a property that needs some work, renovating it, and then selling it when it is all done. Depending on the property, investments such as these can be relatively quick, and at the end of the day, you are not stuck with a house in your hands. Fix&Flip investments allow you to move on when the job is done, earning your investment and profit back relatively quickly. You will not have to worry about property management, upkeep, tenants, or anything of the sort, as you can wash your hands of it and take the profit to invest in another flip investment.
Portfolio Diversification
Investing in the same type of investment time and time again might seem like the way to go if you are earning significant returns, but there is no saying what the future holds. Diversifying your portfolio with short-term, long-term, tangible, and intangible investments can ensure you are prepared for any change in the market. Real estate investments offer you a significantly different type of investment than your usual stock, ensuring that if the market changes are not in your favor or if inflation rises, you are not struggling.
Loan Opportunities
Unlike other investments, real estate comes with flexibility in how you choose to invest. Options such as stocks require you to invest 100% of your own money upfront. Real estate investments don’t require this. You have the opportunity to seek out loans for your investment or choose not to pay 100% of the property and take out a mortgage. If you decide to do a fix&flip investment style, lenders such as KC Investor Funding can provide you with loans to ensure you get your dream investment property without breaking the bank. How you choose to invest becomes much more flexible when you consider real estate. Real estate investments can provide a low-risk, high-reward option. If you are looking to diversify and want to take advantage of the benefits of real estate investing, contact the team at KC Investor Funding.