Invested money has better returns than the money deposited in the bank or stashed under the mattress. There are several investment options available but the one that stands the test of time is real estate. Just like any other kind of investment, real estate has its risks and challenges but it still stands tall among the rest and here are some of the reasons why.
Low interest rates
Real estate was a beneficiary of the Brexit scandal in that the interest rates shot down and those who had invested in this sector will make huge profits. It is now affordable for most people to access mortgage facilities with the low interest rate and it would be wise to put your money in this industry now before things take a different turn.
Banks are back to lending
After the recession in 2007-2008, financial institutions became reserved in giving out loans and therefore majority of people could not access mortgages. They have relaxed their lending standards in that with a steady income from a job or business and a good credit score, you are well on your way to owning a house through a fixed-rate loan.
The prices in real estate have grown steadily since 2011/12, but that is not to say that you cannot get a good deal on a good property especially for those investors who specialize in buying foreclosures for banks.
Investing is now convenient thanks to technology
You no longer have to drive around, interview buyers and sellers or engage in other time and energy consuming activities to get a property. Right now if you want to screen tenants and potential buyers, you can use some apps designed for this purpose. Maintenance and repairs can be arranged through online companies, tenants can now pay their rent online . other technological benefits for today’s investor include getting email notifications with new listings, crowdfunding investment etc. you manage your real estate portfolio from the comfort of your own home or office.
In the past, successful real estate investors invited people so that they can learn from them the “secret” of being successful in real estate. They charged an arm and a leg for these sessions! Right now, if you want to learn about investing in real estate, you only need an internet enabled device with god internet connection and you will not exhaust all the platforms and information sources available, free of charge! Such sources include blogs, podcasts, eBooks among others.
Security of tenure is not what it used to be. Employers are cutting down on costs by reducing the number of employees in their organizations. For this reason, you need to define your financial independence way before it defines you. While you are still enjoying your 9 to 5, put away some money in the real estate as this is a sure way of gaining the financial independence that you deserve.
You will regret not investing now
Investment in real estate is a test of patience. When you put your money in today, your benefits will be felt in some few years to come. For this reason, if you keep pushing the investment decision further, the further your benefits will move. And especially with the low interest rates, if you do not take advantage now, the bus will leave the station without you.