With investing nothing is ever guaranteed however real estate has remained one of the most stable investments over time. There are countless reasons to consider real estate as an investment. Below we are going to review our top 5 reasons to consider real estate as an investment.
- Cash Flow – Simply put this is the difference between your income and expenses. While this is not always positive at the start the long term goal is to have and maintain a positive cash flow.
- Flexibility – Flexibility can come in several forms, both personal and financial. While being a landlord you are essentially your own boss, you work on your own terms, schedule, . . . Also you often obtain financial flexibility once you are able to achieve a positive cash flow from your investment.
- Ownership – Better defined tangible or physical ownership, unlike a stock or piece of paper that says you have a certain amount of money. You can always walk up to your house or rental and say this is mine.
- Peace of mind – While in no way are we saying ownership and being a landlord is simple, there is a level of security and peace of mind. With traditional financial investments in stocks, bonds, startup companies there is no guarantee on what you invest, you can potentially lose it all if the market or economy tanks. With real estate you own a physical property and it will always remain a physical property, while the value may drop it will still be there and be worth something.
- Long term wealth – Much like it sounds, real estate investment is a long term strategy, it’s not a get rich quick method, rather a long term plan that is sustainable.