Investing in real estate has always been one of the most effective ways to make good on the investment. The opportunities that the housing market offers are almost limitless and property investors of all levels of experience can reap massive rewards if they implement the right investment strategies. In this article, we will reveal 7 real estate facts that will change your perspective on this sector.
Real estate investing is one of the best ways to secure an early retirement
Investing in real estate will supply you with a lot of money in a relatively short period of time. By buying an investment property and renting it out, you can generate steady positive cash flow for years. As long as you properly manage this money and continue to slowly build your rental property portfolio, you can put the extra income towards securing an early retirement.
Investing in real estate is the best protection against inflation
Owning a rental property can be the best strategy against inflation. While most assets tend to go, under inflation, real estate experiences a boom during those periods. The reason for this is quite simple. As inflation increases, so does the value of your investment property and the rental income that it generates. Moreover, the average appreciation rate in the US has consistently been higher than inflation rates, so real estate investors are assured of beating price spikes regardless of their strategy.
Millennials buy more houses now
The implications for real estate investors are not negligible. As a matter of fact, this shift is an encouraging sign. If you plan on buying an investment property to quickly sell it, you should be able to sell it if you first learn what millennials are looking for.
No other investment affords you as much control as real estate
When you make a real estate investment, you’re completely in charge every step of the way. Everything from the strategy you want to implement to the mortgage provider you want to get your loan from is up to you. Furthermore, you have the option of screening tenants and only renting to those who fit your requirements.
You will always be able to sell a real estate investment
During recessions and strong economic downturns, it’s not uncommon for companies and institutions to go bankrupt or default on their debt. This can effectively wipe out your entire investment if your portfolio is made up of stocks and bonds. On the other hand, you will always be able to sell a property even in the worst economic situations. Investing in real estate is the perfect way to mitigate the risks of financial markets.
Data analytics is important to real estate
Getting rich with real estate is heavily reliant on carrying out in-depth market analysis. Such an analysis makes use of various metrics that reflect the value and earning potential of an investment property. Data has become an integral part of every real estate investment strategy.
The holidays are the best time to invest in real estate
The last item on our list of real estate facts is this little known tip. Savvy investors and industry experts believe that the best time to make a real estate investment is during the winter. This is based on the belief that negotiations are easier to conduct around the holidays because the sense of goodwill is high. As a consequence, sellers are more likely to cave in and the likelihood of landing a good real estate deal increases and also the demand is higher during the holidays.
