Have you ever wondered why when we talk about investing in real estate we always use the phrase secure your future?
Of course, at a glance we can understand that real estate investment is a safer way to grow our money and one of the easiest if we take into account that not all of us know how the stock market works.
In addition, acquiring a property, even when you do not plan to inhabit it, can be more beneficial than leaving your money saved in the bank , especially if you acquire one that is located in an area whose capital gains foresees a considerable increase.
However, To buy real estate can sound a bit scary and more when we do not have experience in the field: legal procedures, long payment terms, even the fear of not wanting to be tied to a place where we do not know if we are eventually going to stay.
Why Invest in Real Estate?
It is very likely that when we think about investment in 2021, technology and applications come to mind. The stock market and stocks, which for many years have been the epitome of what we consider to be an investment, has shown that they are not always very safe options, and that profits can quickly turn into losses.
Also, speaking through risks and probabilities makes people end up fearing these issues or trusting people who risk their money and savings, worsening their situation and ending up being the victim of fraud and scams.
That is why many millennials, while still interested in investing in issues that involve technology and those causes that help create a better world (such as renewable energy and the environment), are increasingly beginning to look into more “traditional” options like real estate.
Sure, investing in real estate has been one of the safest and most profitable strategies for investors for some time. But for some millennials, investing in real estate may not seem like an investment at all, especially because of the long waiting time that increases the capital gain – and therefore your money.
Investing in real estate makes your savings grow
Saving is one of the ways that workers try to prepare for retirement. With the odds that this is no longer an option for millennials – saving has become the great hope in the face of uncertainty.
However, not all of us know how to save. For example, there are those who consider that having their pig at home is safer than doing it in front of a bank. Distrust of these institutions makes many consider saving their money without the possibility of making it grow.
On the other hand, those who decide to take their savings to the bank are also not very likely to see it grow. At least not as we would like.
Why?
To begin with, investing in real estate can be seen as a kind of insurance against inflation, especially when we take into account that it is in the face of inflation that real estate prices increase during this period. In addition, we must consider that fixed mortgages maintain the same rate, so that even when prices rise, your debt may not do so – in case you plan to acquire a loan with the bank.
So acquiring a property can bring you more benefits than simply saving your money, since the chances of your money being devalued are more dangerous for your money than for your properties.
Diversify your investments
As we discussed at the beginning, real estate is attracting the attention of those young people who are wanting to buy a secure pass for their future. There are those who are investing in super specialization to obtain higher paying jobs. Others are guided by their interests and passions and end up creating apps or supporting companies that combine technology and the search for a better future.
However, one of the tips that you should always consider when investing is to diversify your investments. Try to acquire diverse properties, from lots to residential houses or apartments for rent and vacation.
Invest in real estate as an expert
One of the secrets of savvy investors is that they never stop learning. Yes, there are many who fear real estate investing because they think they need to know everything from the beginning or be a doctor of exact science or something like that.
The reality is that you don’t need to be Sheldon Cooper to understand that to invest in real estate you need to go into the market and know what the possibilities and the probabilities are. Remember that time plays a very important role, especially when you have the opportunity to find real estate developments in pre-sale or in areas that are projected with an increase in capital gains.
And not to mention the amenities and vertical developments. More and more investors are betting on real estate developments that appeal to the quality of life of those who wish to live in them, especially if they are close to schools or residential areas.