5 Reasons Why Real Estate Will Always Be In Demand
Why should you enter the real estate market? The short answer is because you can make a comfortable living in an industry that’s always in demand.
The real estate market is always changing, and in order to succeed, you need to dedicate your time wisely. This dedication and focus on growth will help you to meet, greet and help both buyers and sellers. If this all sounds like something that interests you, it’s time to learn more about entering the real estate market.
Let’s explore 5 reasons why real estate will always be in demand and why it’s still considered one of the safest investment options.
Security
Real estate assets represent a tangible value for your money, they are a physical thing in the real world. Unlike bonds or stocks, it is something you can touch with your own hands, and to some people, it is better knowing you own something physical in the world as opposed to paper or digital numbers in a bank account.
Leverage
Real estate assets give you the advantage to quickly obtain bank loans because real estate is the cornerstone of bank lending.
You’ll be able to get 70% to 80% leverage on decent properties, with a 30-year amortization and low-interest rates, which means you can afford to buy a new property that is 4x-5x your cash.
Inflation
Buying real estate assets protect you from hyperinflation. When prices rise across the field, especially rent, your real estate assets will hold their values.
Real estate has a track record of thriving in inflation, ranking top of the list of investments for holding value, along with gold.
Niches
The real estate industry is a gateway to plenty of niches if you know what you’re looking for and who your target is.
There are single-family, apartments, mobile home parks, RV parks, self-storage, marinas, office, retail, assisted living – about 40 different niches in all. You can choose from these options the perfect niche for your interests and goals.
Selecting the right niche can help you harness the power of your investment and generate big returns.
High Returns
A well-chosen investment can yield returns that are several times higher than those of a bank savings account.
The rates of return on investments are extremely high and would appeal to risk-tolerant investors.