Do you feel like starting to invest but are not sure where? Do you think that to invest you must be a broker or a tycoon?
You will have heard on hundreds of occasions that you have to invest at home, but you still don’t dare. There are many investment options that allow you to earn money without having to move a finger. One of them is to invest in real estate, where you can do several things using hard money loans for real estate investors.
In this post we will tell you the five incredible reasons that why you should invest your money on real estate with Crowdestate. The options as you see are very simple. Like all investments, it generates fear but the truth is that one, real estate is a stable business compared to many others.
Requires less work and maintenance
Being a passive income, it is a great way to receive money without selling your time. You buy, rent and expect your money at the beginning of each month. You don’t have to keep a schedule or be there all the time there. Of course, you need to check the house to maintain its good conditions and pay the taxes in addition to having a good lease that allows you to protect against future tenants.
Does not require specialized knowledge
Unlike investing in the stock market, in the Forex or setting up a business, to buy a house you don’t need a master’s degree. You only need to know the place where you are going to buy:
- Economic and social situation of those who inhabit the surroundings.
- Streets, avenues, commercial premises, green areas, dangerous areas or environmental risk nearby.
- Access roads, proximity to important places such as shopping centres and means of transport.
Best return on investment
While fixed term deposits generate an average of two and a half percent per year on average, a property is producing you every month, on average, six percent monthly and that is much more than what a bank investment can offer you. You see the counting and ringing money every month and the cost for tax expenses is relatively low. So your money is generating more money. Keep in mind that this percentage depends on the location and conditions of the property.
Investment grows in the long term
One of the reasons why most people invest in assets is because of the long-term return. When you buy a property it is already costing more the following year, unlike a car that, once it leaves the dealership, is already costing less. The value of the property can rise more than six percent per year, depending on the general conditions of the place and if you make renovations, then much more. It is a capital that is constantly growing without you having to work hard because the market works for you.
It is constant and secure income
Demand for housing is almost constant. People tend to be more responsible when paying their rent more than other financial commitments made because who is not worried about not having a safe roof to sleep? And unlike other businesses, prices are stable. This allows you to have more financial stability, the banks rank you as a client with more stability and lend you money easier because they have as your guarantee your previous investments.
Conclusion: Easy to monetize
In case you are in an economic hurry or want to invest in something else, it will always be very easy to sell what you have or mortgage it for a loan. It is then an open option for other investments. Buying a property is a long-term investment that can generate extra income, greater return on investment and financial security. Real estate is perhaps the safest and easiest investment to maintain. You don’t need to be an economy guru to start investing.