Why Real Estate is A Good Way to Invest Your Money

For most folks, finding ways to keep their money growing, and doing so in a safe way, is a mind-boggling process. Investing in real estate is an option most would take a second glance, considering the way property market values are going up today.

However, a lot of think that the path to success in real estate is in buying a handful of rental properties, leasing them out for 20 or so years, and then retire rich with millions in equity and a large, fat cash flow to sustain you till retirement. That notion is however quite true; in 30 years probably, the mortgages on the properties will have been paid off, the said property will have at least doubled or tripled in value, and the rents will be substantially higher than today.

The only one problem with that notion is that you have bills and financial needs today and while achieving a healthy cash flow in 20 years or so is a nice idea, it still doesn't solve today's cash flow concerns. You need to solve today's cash flow problems before worrying about creating long term wealth. If you are like the average American, probably your biggest concern is security.

That is the main reason why so many people today keep working at jobs that they absolutely don't like; because they can't let go of the security that a regular paycheck gives. By investing in good real estate deals, one has the chance of getting good yields in the future, and putting their hard-earned money on good pieces of property could help increase their savings in the long-term.

Investing in real estate has been a usually safe and respectably good investment choice over the last decades. With the housing and property market booming over the last several years, people have seen wonderful rate of returns in their real estate portfolio.

Because of all this, real estate looks to be a safe, secure investment. We constantly hear stories of people making ridiculous returns on their investments; however, what we don't hear is how many people have lost their shirts playing the same game. Real estate investing can be a terribly risky one unless you are well informed of the market's movement and indicators.

Real Estate as a tangible investment

One main reason why many people prefer to invest in real estate over equity markets is that real estate is tangible. You can touch it. If you own shares of a certain company or startup tech firm, the best that you can get is a quote on your screen. It's like being able to drive to a house and say that you own it. It makes you feel more secure. I feel like I have more control when I can reach out and touch something physical.
Less risks, greater returns in real estate investing.

When done properly, one can achieve greater better returns in real estate than on investing in the stock market, without additional risk. In fact, I would argue that you can achieve better returns with less risk. Try getting insurance on your stock portfolio. It will never happen because insurance companies know that real estate is a much safer investment.

Real estate Isn't rocket science

According to investment experts, the greatest advantage of plunking your cash on real estate investments is that you don't have to be a George Soros to make good money in this field. Whenever you try to make money, say for example, in the stock market, you need to understand the technical and fundamental techniques of yields, net asset values and such.

You need to get a firm grasp of stuff like inventory turnover, daily sales ratios, etc. In real estate, it is a much simpler, uncomplicated process. If you have a good real estate broker and you do have basic understanding of a basic financial sheet, then you are all set. A good real estate broker can help you in dealing with all the aspects of land and property investment.