Why Are Property Investments So Good?

For most people, the first thing that comes to mind when they hear the term ‘investments’ is the stock market. But, as you’re well aware, there are plenty of investments you can make that aren’t stocks! Amongst the many options, real estate always stands tall and proud. It is always viewed as the best way you can invest your money – but why? 

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Why are property investments so good and so sought after? When you take a moment to look at them, it soon becomes very apparent why they’re so amazing…

Both long & short-term gains

Few things can provide you with long and short-term gains depending on what you do with them. Property investments are excellent because you have two main choices: 

  • Keep the property and make money over a long period
  • Flip the property and make a profit in a few months

Either option works – and they have been shown to work time and time again! When holding onto a property, you can make money by renting it out and generating income via tenants. Or, you can simply live in it for as long as you like, and wait for its value to increase – which it will. 

Flipping the property means you can make improvements and sell it for more than you paid originally. Accounting for the costs spent to improve the property, you can still make a big profit during the sale. So, whether you want short-term profits or a long-term investment, real estate caters to both concepts. 

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The property market is always growing

Property investments aren’t affected by some of the same things that affect the stock market and other investments. For example, if a company starts doing badly, its share prices will decrease. But, this has no effect on a property investment at all. 

Instead, the property market tends to always grow upwards. Over the years, you can see that house prices keep on increasing – even when you take inflation into account. This is why so many people are comfortable investing in property, keeping it for themselves, and then selling it in the future for a big profit. It is usually seen as the best way to fund your retirement as you can sell your family home and downsize to something smaller and cheaper. 

More accessible than you think

The traditional method of investing in real estate isn’t overly accessible. You need a fair bit of money to make a down payment on a mortgage, letting you buy a house. But, there are other methods that don’t require as much money. 

Property crowdfunding is something that’s become highly popular. You have platforms like DiversyFund that let you invest a few hundred dollars in real estate, earning profits over time. Be careful with these platforms, as there have been rumors of things like a DiversyFund lawsuit in recent times. Currently, everything seems legitimate, but just be aware! The bottom line is that more and more people can now dip their toes into the property market. 

Before you make any investments, please consult with a financial advisor to review your financial situation. As brilliant as real estate is, it still might not be the best approach for you. Financial advisors can help you figure out what to do with your money to grow wealth.