If you are looking for investment portfolios to invest in, real estate is a good choice to consider. While many people are still hooked to other investments like funds and stocks, there are investors who like to put their money in bigger investments. Even newbies are allocating a significant amount of cash so they can enjoy the fruits of their sacrifice later on. If you are still not convinced why real estate is a good choice, let me tell you the top 5 reasons why you need to buy properties now.
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Unless your real property is caught in a fire or the destruction is caused by a natural calamity, real properties don’t deteriorate. You can own the property for a lifetime. Real properties can also be renovated, repaired, and maintained. The money you spend to restore the beauty of your real properties is not an expense. You can take it as an additional investment, which will add value to your property.
Real properties are not like stocks and mutual funds that can change their value overnight. This means that the price in the real estate industry is less volatile. So, if you don’t want frequent monitoring of your investments, real properties are better. Even if you don’t think of it for years, your properties will remain steady in a good location. Because of stability, you won’t lose that much when you invest in this portfolio.
Just imagine paying for properties for 25 years and owning them for a lifetime. The benefit is perpetual. The more properties you acquire, the more passive earnings you will get for a long period of time. What more if your properties are located in a good spot? The ownership of your properties can be transferred as well. So, even if you leave this world, your children and grandchildren will still benefit from the investment you made today.
A lot of investors are choosing to invest in real properties even if the capital is too high because of higher returns. Let’s take the case of pre-selling condominiums for example. Many businesses and individuals buy pre-selling units at a low price. When the construction is complete and sellers mark up the price with a certain percentage. For instance, if the pre-selling price is at P3 million, sellers will sell it at P3.5-P4 million. That’s how fast they make money in properties.
You can be as resourceful as you can when you have properties. You can either rent out your place or you can sell it at a higher price. Some real estate investors list their properties on Airbnb and other hotel websites so they can get customers daily. There are also people who turn their places into dorm-like rooms to accommodate bed spacers and students.