Property investment is an lucrative business and there are many advantages and the potential for significant gains. When working with real estate comps investors have the ability to price their properties to make a profit on every deal. Let’s take a quick look at some positive points of property investment.
Properties will always be valuable. If you invest in a business it can go bust but this isn’t really the case with property. Prices may change but people will always need homes. The demand for housing will never disappear, so the possibility of being able to sell an investment property will always be there.
A major plus of property investment compared to other forms of investing is that you can rent it out as its value increases. With most investments you have to sit back and wait before cashing in at a later date. With property investment you can be gaining an income in the form of rent, which can be used to pay the mortgage. So, as well as making money on the investment, you are making money on the rent.
With property there is less risk. It is very unlikely that a property’s value is suddenly going to be wiped out. As we all know there are fluctuations in the market but even after a heavy dip the value is most likely going to increase and/or return in the long term. Many properties are currently worth less than they were a few years ago (due to the current economy) but they are likely to grow again. The vast majority of properties will be worth more in five years time than they were five years ago. Patience may at times be required with property investment, but it will usually pay off in the end.
What were your reasons for stepping out into the property investment arena? Have you settled in to property niche, such as REO’s or short sales? I’d love to hear from you! Leave a comment by clicking the tab above!