It is a competitive world out there. There are many investment options. So why should you invest in real estate? Well, real estate has some unique features that have made it one of the best investment strategies in the United States for hundreds of years. Its advantages are
You can get paid twice instead of once like most other investments.
In real estate, you get money from both the operation of the property also called dividend and a second time when you sell it and the value has increased due to increased rents socalled capital increase. This is in contrast to most other investments such as precious metals and nonpayment dividends, where you can only be paid once based on valuation of the assets value. For example, if you buy one ounce of gold, you will not receive a penny in dividends. All you get is the difference between what you bought the gold for and what you sell it for. The same goes for most stocks. It is obvious that the best of all worlds is to get consistent income when you own it, and then a great advantage when you sell it.
It pays a higher dividend than any other form of investment.
Most real estate investments pay a dividend of approximately 10 percent. The average stock paying dividend and most not is lucky to be 1 percent. The same goes for CDs and bonds youre looking at around 3 percent to 5 percent. There are no other forms of investment that can pay a dividend as high as real estate. Of course, there are such things as junk bonds that can pay 10 percent, but they can as much lose your entire investment if they are standard. Therefore, they call them junk. Remember the saying before you can get a return on investment, it must be a return on investment.
It comes with attractive lever power.
Most real estate investments include the potential for leverage in the form of a mortgage. This allows the investor to create an even higher return without taking excessive risk. If you buy a property and drop 20 percent and borrow the remaining 80 percent, you will greatly increase the return on your investment, provided that the return on the entire property is higher than the mortgage rate. This ability to use intelligent levers has long been an attraction. It allows you to pay off the property with your own property. Can you do it with a CD? No Bond? No, gold? No, it is certain that you can buy shares on the margin, but its really a form of speculation more than investing, and often has big consequences.
Its time proven and has an impressive track record.
Investments in real estate have an impressive pedigree. The first US millionaire John Jacob Astor made his fortune in Manhattans real estate. Since then, many of the richest individuals in the United States have created their wealth in real estate. These include Donald Trump, Conrad Hilton, Joseph Kennedy and literally hundreds of thousands more. It has argued that more wealth has been created through real estate investment than any other form of investment in combination.
When investing in a stock or bonds, you really have no control over where your money goes or how the company is managed. Unlike Warren Buffet, which normally buys full control over the company by purchasing a majority of the share, the ordinary investor has no power over the daily business of the business in which they own shares or bonds. In addition, their shares or bonds are normal not secured by any concrete. In most cases, all you have as security on your investment is a paper and hope there will be a market for buyers for the paper magazine in the future. With real estate you get an act of property the title of the asset is put in your name. You control whats happening. You are the boss. Your investment your capital is supported by the title of real estate.
There are many big reasons to invest in real estate. Not only does real estate offer the highest financial return, it also offers security and has a proven performance list. It also offers attractive leverage effects that allow you to extend your investment dollars longer and get even higher real return.