Invest for the future; invest to start building wealth; invest in order to slowly gain financial freedom. These are the most common things that we hear from financial advisors, right? But how can you start investing? What is the best way Abdo Romeo to invest your hard-earned money? In this article, we will be discussing why investing in real estate is a great way to build wealth, and why you need to start investing in this industry.
Real estate is a good investment because the worth of properties rarely depreciates. Even though the state of the real estate market depends on the status of the economy, just like other investments, the worth of properties don’t fall down as far as other investment platforms. In fact, the lowest downfall of the real estate market was 20% several years ago. After this event, the price of real estate properties continues to improve. Unlike other investment platforms that were heavily devastated, real estate remains stable.
If you are going to invest, you need to make sure that you are going to invest on something that can help you generate cash or unrealized income. Purchasing a property now and waiting for its value to appreciate is a hundred times better than saving your money in the bank. The sad truth is that the more you put your money on the bank, the Federal Reserve prints billions of dollars every year. The value of dollar continues to depreciate, while real estate properties continue to increase in value.
I can remember a client who had his property listed for sale a year ago. They bought the property 20 years ago for $23,000. Do you know how much the property was sold after 20 years? It was not that much, around $362,000. Do you think if you put your $20,000 in the bank and waited for 20 years, will you have $150,000 after 20 years? The average interest rate per annum is 1%, and with $20,000 in the bank, that would only be $200 per year!
Another example of what most people think as “good investment” is when they buy luxury vehicles. They think that by purchasing more expensive vehicles; they will be able to reduce the amount that they need to pay in tax. But have you ever heard of someone who was able to sell a used vehicle for a price higher than the amount that they have spent for it? Some people may say that it is a good investment platform, but based on the description of “investment” for most financial advisors is, buying vehicles doesn’t fall under an investment platform.
Although the examples that I have mentioned above won’t reflect the amount that you will get from actual income, these will give you an idea about how you can invest properly. This article also made it clear that real estate property is one of the best investment platforms because you will be able to slowly build your wealth. You may not see instant or immediate results like building your own business or investing in stocks, but real estate has less risk and is very advisable for people who are just starting to invest.