8 reasons to invest in real estate
By: Listing Nearby
Tags: Investment In Real Estate, Real Estate, Real Estate Investments

The financial world has shown us the risks of investing in equities and funds in recent years, and the ordinary savings account provides very little. You’ll have to pay extra taxes on your investment income in the not-too-distant future. The solution? Invest in real estate. Real estate investing can be rewarding even in times of economic and financial crisis. The value of your investment capital increases in the long term and your property itself can give you income without risk. This is how you get two birds for the price of one. The result? Your financial security and peace of mind.

1. Real estate investing is handier than saving

The interest rate on your savings account is low, and depending on the economic environment, inflation can occasionally outpace the return on a fixed-term investment. Purchasing an investment property is one of the best ways to put your money to work. With a good purchase, you will see capital increases for the value and the rental income will fill your bank account. Your retirement is assured.

2. By investing in real estate you protect yourself against weak currencies

During times of crisis, many currencies are affected, and as a result, they are valued less worldwide than stronger currencies such as the Euro or the Dollar. In general, properties are appraised and evaluated in dollars or in reference to a certain worldwide or regional market. Invest your savings quickly and safely. When you invest in real estate, you are not subject to the ups and downs of local currencies, and your capital is protected. A monthly rental can also be a decent source of income, which is another benefit of real estate investing.

3. Investing in real estate generates extra revenue in the form of a rental

Have you already invested in real estate? Then you know you’ve won twice: your investment property will appreciate in value over time, and you’ll be able to count on a consistent monthly rental income. In the long run, the average yearly return on a yield property is 7 to 8% each year (calculated with international currency).

4. Real estate investing is a safer bet than the stock market

Stock prices are volatile, and the financial sector is bolstered by a slew of new investment products, including sophisticated systems with low or no returns. Many people pick investment property as a risk-free way to ensure their future. This sort of investment is obviously more expensive at first, but after you have two or more homes, you will see that your money grows quicker and quicker as a result of rental income, and the value of investment properties increases over time.

5. Investing in real estate: goodbye to unstable prices of gold and commodities

Investing in commodities such as gold and silver, which are very volatile, is also a risk. The price of gold and silver plummeted later. Even experts agree that determining what elements determine the pricing is challenging. It’s just conjecture, and there isn’t a very strong foundation for retirement unless you delve extensively into the markets, which takes more time than real estate investing.

6. Investing in real estate rather than retirement funds or insurance

Except during a financial crisis, pension funds, life insurance, and group insurance are safe investments for the future. If your bank or insurance firm is having financial difficulties, switching to a different insurer or bank might be quite costly. Do you wish to leave your loved ones some money? Then the greatest option is to invest in real estate.

7. Investing in real estate as an addition to your pension

We already know that a minimal retirement, or even a retirement that you will receive after reaching a particular age, will most likely not be sufficient to meet your demands. The mandatory retirement system will be harmed by the aging of the population and the rise in life expectancy. That is why it is best to take care of your old age in a safe way that gives you the security you deserve with income from an additional rental. Your greatest bet for a dignified retirement and a worry-free retirement.

8. Real Estate Investing: Park Your Money in Parking Lots

Another very stable real estate investment? Garages and parking lots. Because most cars are not used for more than 90% of the time, they will always require the usage of a garage or parking lot. It’s safe to assume that public parking in major Canadian cities will continue to rise. In the future, you will get an even higher return, both for the rent and for the value of the parking lot itself. Another benefit of investing in garages and parking lots is that maintenance costs are low.