It is no wonder that so many people are interested in investing in real estate. Not only is it one of the worlds largest industries but real estate investments are traditionally one of the best returning investments in the long term. That does not however mean that it is easy and accessible. Whilst it is a great way to build wealth not everyone will be able to make it as a real estate investor.
So here we examine some of the questions that might help you decide whether traditional real estate investing is right for you.
What are the advantages available to you with real estate investing?
A residential buy-to-let investment is a great way of securing cashflow. Tenants in the property pay a monthly rent and cover costs such as insurance, vacancy fund, management fees. You will then receive a monthly cash flow, which can be perceived as an additional salary.
If, when choosing a property, you choose a solid opportunity with strong growth prospects, then it is possible that by the time you come to sell your investment it will have grown in value. This can be one of the most lucrative ways to make money from real estate investing.
Real estate is a ‘bricks and mortar investment’ which means that it is backed by something tangible and real. Even in market downturns properties still have an intrinsic value and over time are more likely to appreciated in value than depreciate.