“Whether you want to have passive income from property or save for retirement, you are on the right track to accomplish your financial objectives sooner than you might think.”
Real estate has always been a solid investment, but it is more appealing during the periods of high inflation. You may want to invest in real estate for a variety of reasons. Whether you want to make money by renting out your home or build up your wealth through real estate value appreciation, investing in property is a good idea in many ways. To find the best ways, we’ve developed a list of some of the finest reasons to invest in real estate and are discussing it with you in this article. We hope our findings assist you in making a potentially profitable investment!
Decorated with achievements as the IQI Group Vice President as well as the founder of IQI Eliteone Group, Dave Chong shared his two-cents on how one can get on the fast track of wealth through cash cows and investments.
Starting out as a part time real estate negotiator, Dave went on to establishing it as a successful career for himself over a short span of eight years. In his first five weeks of joining IQI, he managed to seal five deals, with a commission of over RM50,000.
However, he was dejected when he faced cancellations at the end of the month. Despite being down in the slumps, Dave picked himself back up and convinced himself that this was only a slight setback in his journey.
In 2014, Dave went on to becoming one of the Top 10 Achievers in IQI and was promoted to team leader and team manager thereof. To date, Dave’s Team has closed over RM1 billion in sales for IQI, laminating is outstanding feat.
“Of course, your goal is to invest in properties that have a high potential of appreciation in the future.”
Property investments may be a strong source of wealth growth if they are carefully planned, researched, and implemented. The value of the property rises over time, while the cost of the mortgage decreases. Therefore, it makes property investment, a solid investment for your long-term sustainable wealth creation goals as well.
You Don’t Need a Lot of Money
to Invest In Real Estate
Many people know that having investment properties needs a massive sum of money. No, you don’t. If you have good credit and keep your obligations under control, you should have no trouble receiving financing when you find the right property.
When you can receive traditional financing, you just need 20% – 30% of the sales price to put down on a property. This means that you may leverage your investment by investing in an asset worth far more than you put in. If the property value rises, you will get a higher return on your investment.
Hedge against Inflation
“Unlike paper currencies, real estate does not lose value to inflation year after year – it exceeds.”
One of the advantages of investing in real estate is that it serves as a hedge against inflation. When there is a lot of inflation, your rental income, and property value both go up for sure. Real estate investors like inflation because as the cost of living rises, so does their cash flow. The value of your home typically raises greater than the growth of inflation.
It’s a Great Retirement Savings Plan
“You only have to reach the point where the income from your properties is sufficient to remove the need for you to work.”
Real estate is not a liquid investment. You invest in it for the long term. As time passes, you build more equity in your property. When you reach or near retirement age, you can sell the property and use the profits to fund your retirement.
Many people refer to it as a forced retirement plan. You don’t save money all at once, but you pay your mortgage every month. If you rent out the property, your rent should cover the rent as well as any other expenditures spent, allowing you to invest in your retirement without having to contribute money each month.
The property also serves as the best collateral
The most common way to get a small business loan is to put up property assets or the value of the property. That commonality, and lenders’ desire for it, basically comes down to a few factors: Real estate is valuable because it holds its worth over time, even after liquidation, and it is generally available.
On that last point; since many business owners have access to home equity, property investment is a natural and straightforward first choice for arranging a business loan.
A place to Stay
“Real estate is always a good investment since it gives you more choices than other forms of investments.”
If you invest in stocks, bonds, or a private offering, your success is entirely based on circumstances beyond your control. At most, you have two choices: hold or sell. With real estate, you have unlimited possibilities. You can buy a property to flip it and then rent it out if the market falls. Alternatively, if the conditions do not favour your current situation or you do not receive proper appreciation at the moment, you may use this property as a place to stay until the situation changes in your favour.
Property Values Always Appreciate
“With real estate investing, your asset not only increases organically with the market, but you can also force appreciation.”
If you invest in a property for a long enough period of time, it will most likely appreciate. While events occur, like the housing crisis of 2008, they aren’t common. Buildings and land usually rise in value, making your investment worth more than you paid for it.
You may also drive up the value of a house by renovating or enhancing it. Whether you acquire an undervalued house and fix it up to sell or renovate a rental property, you can enhance the home’s value faster than natural appreciation, providing you a higher return on investment.