Most people will save their money in a bank and receive a very low interest rate. However, investing in real estate will provide you with a much larger return on your investment within a very short period of time. Here are 4 reasons why investing in real estate is an excellent choice for protecting your wealth.
Using leverage to multiply asset value. – Real estate is a good way to place debt on your asset. This will give you more money to invest in more assets, which will significantly multiply your asset value.
Hedge on inflation – Real estate is a hedge against inflation, since real estate investments have historically shown the highest correlation to inflation when compared to other assets. Therefore, as inflation occurs, the price of real estate will also rise.
Capitalize on the physical assets – Real estate has property value and land value, and always is on the rise. Unlike other investments such as the stock market, real estate most often is on a upward trend.
Feeling the pride of ownership.- If you have invested in the right property, gotten the right tenant’s, you will feel a sense of pride from your investment. This is a great feeling of accomplishment and can give an individual a sense of financial stability and freedom.
To select the right real estate investments for your portfolio, it is best to look at what is currently available in the market and analyze any upcoming areas that are due for development.