Since time immemorial, each day that we spend in this world has always been marked with uncertainty. With each passing day, life tends to become harder in all aspects. For example, the cost of living tends to keep ballooning, trends change with each passing day, and, as if that doesn’t make life hard enough, the economy keeps on fluctuating. However, what if there was a way you could financially cushion yourself against the pitfalls that life may throw your way without warning? Have you ever considered investing in real estate? Though the benefits of investing in property is akin to paying insurance – You only gain if you delve into it – It tends to have many benefits. The article below will focus on some of the advantages of putting your money in real estate.
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1. Property Investments Affords You Future Financial Security
Most young people rarely make plans for their future financial security when they are still employed. This is because most of them tend to ignore the benefits of having financial freedom in their later years.
Australian finance expert Peter Wilesmith highlights the importance of having money for those rainy days. “Especially in the midst of a global pandemic, we’ve seen just how important it is to have money saved in the account. With the property industry, that’s now the prime opportunity to give yourself some financial security for years to come.”
Investing in real estate can set you up financially in your retirement years. If you are still young and earning, starting a real estate investment portfolio can turn out to be a great idea when your earning years are long gone.
2. You Get Passive Income to Finance Your Lifestyle
If you invest in a liveable and marketable property, you can start earning returns on your investment almost immediately. Any money that you earn from leasing your property can be used to pay off your mortgage while you can channel the rest to funding your lifestyle or beefing up your retirement benefits. No matter the size of your investment, any income that the building generates will put you in a better financial position than you were in the past.
3. You Can Leverage One Property Investment to Grow Your Real Estate Portfolio
The hardest thing about delving into real estate investment is usually acquiring the first property. However, once you are able to purchase your first property, you can easily leverage the value of the property to acquire another property.
For Australian architect entrepreneur Rick Buick, continually growing the portfolio is the easiest way to grow the income. “Getting on to the property ladder is probably the hardest part. However, once you’re on it it becomes infinitely easier to go further up the ladder and increase your income.”
Remember that once you acquire a property, it usually becomes an asset that you can use as equity for securing your next mortgage.
4. You Will Always Have A Liveable Property
You can always use your real estate investment as an alternate place of residence should you need it in the future. For example, after retiring, you can move into your property if it affords you the chance to live a more idyllic lifestyle.
5. You Do Not Have to Use Your Own Money to Venture into Real Estate Investing
To buy a property, you may have to partially fund the purchase of your preferred building and then find a financial institution to lend you the rest of the money. You can then lease the property out and use the income to pay for the premiums generated by your bank loan.
Hotel owner Tamara Large emphasises that it doesn’t take large sums of money to get involved in property investment. “Bank loans are a vital part of the process, and most people don’t pay for everything themselves straight away. Investment properties take time to get into full swing, and any prospective property investors need to be patient.”
If there is any extra income, you can use it to repay your mortgage. In such an arrangement, you may find that you have eventually paid off the loan you took and become a full property owner. Instead of using your own money to fund the purchase of your property, you will have used other people’s money to become a fully-fledged real estate investor.
Investment properties are becoming more and more important in people’s incomes. You can’t afford to be left behind in the property game,and that’s where Crash Realty comes into play.