Thinking of a good investment for your future? Here are five good reasons why real property should definitely be at the top of your list.
It’s a relatively low-risk investment
Of course, with investments, there can never be any guarantee. Depending on what it is you have invested in, you might end up losing more money than you gain. An investment in real property, however, is less likely to end up a fluke so long as you play the game right. After all, it is not without reason that real estate is considered a “rich gainer”. The key thing is to keep in mind that several factors—the geographic location, mortgage interest rate stability, inflation rate, population density, market behavior, etc.—determine whether a property is going to make a good investment or not. Play these factors well and you’re in for a positive cash flow in the years to come.
It’s not time consuming
If there’s one resource that is just as valuable as money, or even more so, it would be Time. The great news about real estate investments is that they are not time-consuming ventures. It’s more on learning to watch and wait for the optimum time—excellent market conditions that would allow for great property deals. The entire process involved in consummating the deal may be overwhelming at first, but don’t worry! You can always ask for professional help, but we’ll talk about that later.
You don’t need big capital
What’s wonderful about real estate investments is that you don’t have to shoulder the finances alone. You don’t need to have a huge start-up capital. So how will that work? This is where the concept of leveraging comes in handy. It is a common practice in the industry for property investors to put in only a part of the full sum that they need for the investment. The rest of the financing often comes from other sources such as finance companies, investment companies, banks, and OPM (Other People’s Money). Your ROI (Return on Investment) will then largely depend on how well you have utilized the concept of leverage based on a keen understanding of mortgage rates, property appreciation, and other key factors.
You can benefit from real estate appreciation
Appreciation rates for properties vary depending on their location. Well-maintained locations and those that are in high-demand areas often garner the highest appreciation rates. These are areas you should be on the lookout for. You could even own properties that appreciate for as much as 8-15% annually as long as you know where to start looking.
There is a high demand for real property
Especially in highly-populated areas where usable land area is scarce, real estate properties are in high demand. These areas may be constrained by development regulations, resulting in an increase in demand for land. In such locations, it is thus not uncommon to see prices for real estate skyrocket. Going with the trend for real property is thus going to prove an entrepreneurial decision on your part, and one day soon you’ll be thanking yourself for investing in it.
While there are, indeed, strong reasons for making an investment in real estate, you might feel at a loss—not knowing exactly where and how to start. If so, that is not a problem! That is exactly why we’re here.
PHILGEMS Realty Corp, it is our passion to cater to those who seek professional help in real estate investing and property management, among others. Our organization is made up of seasoned individuals—professional licensed brokers, experienced consultants, and accredited real estate salespersons—all dedicated to helping you invest in properties wisely. So <a href=” http://www.philgems.com.ph/contact-us”> give us a call or leave us a message today </a>, and let us know how we could be of assistance. We would be more than happy to render our professional services so you could make the best out of your investments.
Richard Thaddeus Carvajal is a Registered Financial Planner and the CEO of Philgems Realty Corp.