I have been investing money now for around 10 years and throughout that time I have made some profits, some losses and some investments which I’d rather not recall. In the main, my investments have served me well and for that reason I am often asked by my friends where they should invest their cash. My view is that real estate is the smartest move for investment and I was chatting to a friend of mine who works for the Terra Group, to go into a little more detail about why real estate makes so much sense.
The Terra Group works throughout the United States revolutionizing neighborhoods and building beautiful homes from luxury high rises to homes for single persons. Here are some of the insights that my buddy Pedro from the Terra Group had to offer.
Unlike with stocks and shares, wen you have property you can physically see you investment and instead of numbers on a screen, it is right in front of your eyes. This gives many people far more security in their investment than in other industries.
When it comes to making money from your investment, real estate offers many different ways in which you can do so. You could make money from renting out your property, you could cash in by flipping the property i.e. buying cheap and selling quickly for a higher price, and you can also make money from renting it out until the price rises when you can sell it if you so wish.
Supply and Demand
Ever since time began, the demand for properties has far outweighed the supply, in spite of the good work of companies such as the Terra Group. This means that there is always someone who you can sell your property to if you are smart. There has been calls on governments all over the world to build more homes for people and yet these have gone unheard, which is great news for investors.
With the exceptions of the odd crashes which have taken place over the last 50 years, the real estate is not only very stable but it also has bouncebackability meaning that even if it hits a slump, it will almost always come back again. Many investors get into real estate because of the fact that the market is so robust. Again, this comes back to the supply and demand argument and of course there are some years when the market will be far stronger or far weaker than others, but generally speaking when you invest in real estate, you can have much more confidence than if you were to invest in say, stocks and shares.
My advice to you on investing in real estate would be that you do plenty of research before you get started and really bolster your knowledge of how the sector works, and how the market moves.