Monday, 29 February 2016

5 Reasons Why Real Estate Is The Best Investment



Real estate investments; what about it? well, it is everything. 5 reasons why real estate is the best investments is something we ought to remind ourselves every now and then. Let me put it this way: if you think of a good investment, safe, tangible, the one that your banker can gladly lend you money to buy and lots of other goodies, what else will you think of if not real estate. In my world it is all that matters.

Investing as we all know is an action taken by individuals or group of individuals to put resource together into a profitable venture for a common goal of receiving profits. Real estate investing is an act of buying a landed property to keep or sell all at a profit. If the word profit is absent, then it is no longer an investment.

Since I found my passion in real estate, I witnessed a rebirth, a new me. I felt a good reason to go for it for life. In this article, I will share with you 5 reasons why real estate is the best investment. For better understanding and clarity of my view, I will break it down into bullet points

It brings about cashflow
Definitely, all investments brings cashflow. Some might be stable others might not. But a very good reason why real estate is the best investment is because it has the probability to remain stable in every situation of the economy. Even in hard times. Real estate provides one of the most essential necessities of life. So whatever the economic threat is, people must have a roof over their heads. That is why the cash will keep pouring in.

Borrowing Advantage
Real estate is a tangible asset. It is not like a ghost as I use to call paper asset such as stocks. It is something that you can feel; move in, out and around. In addition, it is by itself immovable. No one can make it disappear from its physical location. This is one of the major reasons that financial institutions will lend you money to buy it.
The borrowing advantage is another reason why real estate is the best investment. The banks can lend you money then allow you to pay back over a period of time. If your real estate investment is a rental property, then the leverage is more beneficial, because the tenants pay for your debt indirectly. Despite that, you still have to have some cashflow out of it.. click here to continue reading

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