Real estate investment has been known to turn people into millionaires, hence the attraction for people getting into it. Nothing is better than investing in real estate now and that’s not because Donald Trump is a real estate investor, but because now the breaks have gotten even bigger for real estate investors.
Now the question remains for those interested in real estate investment; Why are more people getting into real estate and what’s so special about real estate?
Well, let’s take a look at some of those reasons;
The cash flow is one attractive feature in real estate investment. Rental income for one, after all expenses have been paid. Examples are the rental properties, Airbnb, vacation housing, buying and selling off lands. When you buy a real estate investment that pulls in more money each month than the expenses you carry to own it, your cash flow is certain. Which is why people get into real estate.
In the majority of investments (stocks, bonds, jewelry, bitcoin, lands, properties, etc.), you are always hoping to buy something that will appreciate, then sell it later for a profit. When the value of a property increases, we call this “appreciation” the same goes for a land. Nowadays, wise investors are not just betting on appreciation, they are purchasing properties based on a sound judgment that the property will generate more income than it costs to own.
Return of Investment (ROI)
Real estate has proven to be the safest, steadiest and simplest way to create wealth mainly because of its return of investment. There’s a strong trend of returns, majorly in areas or locations where there is an increase in population caused by immigrants i.e Lagos, ensuring land and property demand increase over time. In this regard, constant references to high ROI have been subscribed to buying properties and renting out quickly or buying Land and reselling.
Many people understand that real estate can create substantial wealth, but not everyone understands why. I hope the above few points have shone light on some of the reasons people investing in real estate grow their wealth so effectively.