When we talk about legitimate ways to earn in the fiercely competitive world of today, the discussion usually boils down to two options.
First and the more traditional of the two is the salaried occupation (either employment or self-employment), but that mode of earning has its limitations and drawbacks.
The second sure-fire way to bring in some (or huge amounts of) cash is an investment!
Whether you decide to invest in stocks, bonds, mutual funds, real estate or any other vehicles of investment, the wheel to kick-start the building of a fortune starts turning.
By offering predictable cash flows, appreciation in value over time, higher returns and more incentives, real estate investment holds a significant advantage over-investment in bonds, stocks, or mutual funds as it gives you full ownership of the tangible asset.
If done correctly, investment in real estate is one of the most profitable and secure means with the potential for success
Top 3 Reasons to Invest in Real Estate
1. Steady Cash Flows
Due to its potential to yield income returns – especially long-term – real estate investment tends to stand out when compared with other sources. One of the fundamental benefits of investing in real estate is ‘continuous cash flows’.
To reap riches, it is necessary to invest in real estate with a plan.
For short-term returns, investments in rental properties for cash-flows are ideal. The monthly flow helps you maintain a passive income which is sufficient to manage monthly finances, as well as adds to your savings. Moreover, the continuous cash flow adds to the long-term rewards by granting you appreciation on the rental property.
Know the worth of your property, given the apt market conditions, you can resale the property to gain a higher price of the property and invest elsewhere.
The money you invest in real estate is an unbroken cycle of cash flow, which is highly unlikely in case of investing in bonds, or stocks.
2. Safety-net against Inflation
With the current inflation rate in Pakistan, the government has drawn ire from many quarters. However, real estate investors may be one of the few benefiting from the situation.
Strategic investment in real estate not only grants income returns but also provides a safety-net in this time of chaos. As the prices go up, so does the value of investment, property, and income. This keeps the investors protected against both immediate and delayed fiscal threats.
Furthermore, an increase in the cost of living ensures noticeable growth in cash flow due to an increase in the value of the ‘real’ asset.
Hence, investment in real estate is a powerful tool of wealth generation that also results in increased equity.
3. Unlimited Offers
While investing in stocks, bonds, or mutual funds, success is entirely dependent on factors outside of your control. At most, you can either hold or sell.
That, however, is not the case with investing in real estate. Due to its nature of being in a continuous flow, investing in real estate gives you access to numerous other options, as real estate can be refinanced, rehabbed, and rezoned.
Imagine buying a property, but the market rates fall… rent it out.
If you buy a property, you can always sell it whenever the market rates appreciate.
With time, you can always develop it, redo it, rent it or sell it…
This flexibility is what makes real estate a real asset to invest in.
Investing in real estate may not be for everyone, but understanding real estate is simple. Real estate is an unparalleled asset that gives you complete access to the investment, offers competitive risk-adjusted returns, and guarantees an attractive source of income.