5 reasons why you should invest in real estate
Real estate investment that sounds very scary. Buying a house isn't cheap. Especially in this market you're suggesting that I can't sell the house or have to sell it at a loss? These are all kinds of questions that may arise for you as a starting real estate investor. These can be good arguments why you decide not to invest in real estate. Despite these fears there are 5 very good reasons why you should invest in real estate.
Reason 1 Reasonably safe investment
Real estate is a reasonably safe investment. If you look at the next picture you will see that in general real estate always rises in value. Of course there are times when the price ff drops, but in the long run real estate always rises in value.
Reason 2 Someone always needs a house
A house is one of the basic needs everyone needs. As we see, the world continues to grow, and the number of inhabitants of the Netherlands is rising. This means that all these people need shelter. With this in mind, there is a fairly good chance that there will always be someone who will want to rent or buy your investment home.
Reason 3 Often earns back full money within 20 years
With a good real estate investment you can fully recoup your investment within 20 years. If you let your real estate investment during these 20 years, you will have earned back the total amount in rental income alone. Even in case of temporary vacancy. If you decide to sell your property after that, you will have your investment fully recouped by the rental income and the full amount as a profit from the sale.
Reason 4 Higher return than savings
If you have a lot of assets, you will have noticed that the interest rate is currently so low that almost nothing is earned from it. In fact, it is so low that money can barely keep up with inflation and therefore loses its value. With an investment home you can soon earn a return of 7% With such an investment home you can earn back your investment within about 15 years. While by saving your assets barely or not at all grows.
Reason 5 You let your money work for you
If you buy a house with the intention of letting it, you will receive monthly rental income. So as long as there are tenants in your investment home, you will receive monthly cash flow. In the case of an urban home, you can easily receive a month's salary while you do not have to be physically present, or toil from 9 to 5 a week. By investing in real estate you let your money work for you instead of working for your money.
How can you invest in Real Estate?
If you are persuaded to invest in real estate, it is a good idea to learn more about this or to get advice. After all, not every purchase is a good investment. It is important to find out what makes a good investment property.
Click here if you want to know the 3 requirements of a good investment property
