On an average, the average Joe spends about a third of his life working. Working – to feed hungry mouths, for financial security, social security, status, for a secure future. A safe and secure future is what entices all of us to work for a better tomorrow. We all employ different ways and methods to achieve our goals of multiplying our savings and wealth exponentially. Some well-known options include fixed deposits, gold, mutual funds, venture capital and stocks. However, real estate – one of the best long-term low risk investments – is almost always forgotten.
Real estate investment, for the most of us, represents something alien; something we are unfamiliar with. The unknown scares us and this leads to a skewed perception that conjures up situations that people tend to avoid: the paperwork and filings related to buying and selling properties, legal hassles, or renting out homes. But the reality is altogether different.
The modern-day real estate industry has evolved through the years and has become a capstone on which one’s fortunes can be built. Real estate investment needs no more work than any other type of investment. In fact, it is just as passive as the rest. The introduction of real estate investment trusts (REITs) has transformed the whole face of the industry, enabling the average person to have a taste of the riches the sector holds.
A smart investor always remembers to place his bets in such a way that his returns always covers his loses and still provides him a leeway to maneuver. Real estate is considered to be the lowest risks investment that yields the highest returns. It is not just the risks but the additional benefits that make it such a lucrative investment. Predictable cash flows, tax advantages and portfolio diversification are some of the most notable upsides of investing in real estate.
Despite the COVID pandemic that has sent global economies into a slump, the real estate industry has managed to stay afloat. Post-pandemic incentives and policies by governments have revived the industry and even driven up demands. As economies recover, the real estate industry will grow and continue to yield stable returns for the artful investor.