Most people dream of owning a house one day. From an investment standpoint, real estate is one of the most worthwhile assets you can own. You’ve probably heard people rant and rave about how you need to get on the property ladder as early as possible in your life!
The question is…why?
What is it about real estate that makes it such a worthwhile investment? Well, here are three reasons that will answer that question:
The Value of Properties Always Goes Up
It’s rare that you can look at an investment and say that it will increase in value over time. You have things like stocks and shares that are volatile and might go up but could also come crashing down. Houses are never going to be worthless. Even when the real estate market experiences a dip – like during the 2008 financial crisis – it rights itself in the end.
There’s data to back this up. Check out this graph that demonstrates how much property prices have increased over the decades. If you bought a home in 2012, the average sale price was just over $230,000. Comparatively, the latest reports show the median sale price right now is over $400,000.
It’s More Accessible Than You Think
Real estate is often seen as an investment opportunity that’s locked away and only available to rich people. Indeed, you can invest in things like stocks or Forex with a few hundred dollars. To buy a house, you’d need a few thousand for a downpayment, and then you’d need to apply for a mortgage. On the whole, it feels inaccessible.
However, it’s more accessible than you think. As these DiversyFund reviews show, there are new ways to invest in real estate. You can join a real estate investment trust that pools money from different investors and invests it in a property. You’ll basically own a share of a property portfolio, getting dividends from it. So, it is possible to reap the rewards of real estate without spending as much as you think.
You Can Manipulate the Value of a Property
If you own property all by yourself, you’re in a unique position from an investor’s standpoint.
Here, you have an asset that you can manipulate and make more valuable. Slapping a new roof on a house will instantly increase its sale price. Adding a little extension will do the same, as will investing in new windows. Real estate is one of the only things you can actively alter to make it more valuable. You can’t do this with any other asset, which is why properties are so worthwhile – you’re in control of how much your asset is worth!
Evidently, real estate is worth your time and attention. Most people would say they’d buy a house if they won the lottery, but you should buy a whole load of houses! Growing a property portfolio is a genius idea and it should be something you aim for. Start saving now to buy your own house, or look into trusts to invest for less.
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