If there’s one thing we like to shout from the rooftops at Bold TV, it’s the importance of real estate. But to talk about real estate, you first need to understand the importance of investing. Most people have their main source of income, their job. That’s active income, when you physically put in your time and effort and get paid. But a key recipe for building wealth is passive income, when your money makes money while you sleep. Here are some reasons that real estate is a great investment.
5 Pros to Owning Real Estate
- Real estate is a tangible asset. You can touch a house. And it will always maintain some form of value. But some people choose the route of stocks and bonds. These intangible assets are risky. Companies may go broke, leaving your money very much intangible to you.
- The rental property market is on the rise. Most people can’t afford to buy a house. So, they become perpetual renters. As long as you have faithful tenants, you get monthly rent checks.
- You can live there, too. If you don’t have enough money for a rental property separate from your own house, that works! Owning your house builds your wealth by giving you something to own. And you could always flip it and sell it!
- Real estate keeps up with inflation. Real estate has a solid return even during periods of inflation. The value of tangible assets doesn’t diminish.
- Real estate outlives you. Physical property is a sustainable asset. It’s still around even after you aren’t. This gives you something valuable to pass down, building generational wealth.
Multiple Ways to Invest
If you want to invest in real estate but can’t afford to buy a house or apartment, check out this article on co-owning and co-living. If you want a low-risk option, maybe you want to invest in a Real Estate Investment Trust for now. Check out this article with tips from a 28-year-old real estate mogul. And learn how to best make your money work for you!