Why Young Professionals Should Invest in Real Estate? 10 Reasons
They say that it is better to invest when you are in your early or mid-twenties, right when you are earning a lot in your career without the responsibilities of adult life or having a family of your own. And the earlier you start, the more time you have in exploring the vast branches of investments.
Real estate is one of the possible investment choices a young professional can choose. It can be intimidating at first, but eventually it can be very rewarding. Here are ten reasons why you should invest in real estate:
1.) The financial concept of “Time Value of Money” applies quite well in real estate investment. As inflation soars, the value of savings are reduced and other expenses go up especially rent. And with the price of rent bumped up, you get to earn more over time.
2.) It is better to start younger since, when you get older, you’ll have more commitments and responsibilities on your plate. You might not be able to market a lot anymore.
3.) Real estate is a tangible asset. You can use it, rent it to others, and even renovate it to increase its value. There’s also the psychological comfort of seeing your portfolio or taking your friends through a stroll on your properties.
4.) Real estate is an excellent source of passive income. You can have a stable cash flow without much active participation or management on your properties.
5.) Compared to stock market investment, real estate is much easier. Stock market requires education, research into its complex systems, and has a huge risk involved. You may also need to be mentored by experts like Bo Sanchez in the Truly Rich Club. Real estate is much simpler with very little complicated research and it is possible to do it all on your own.
6.) You can use your properties as assets in applications such as bank loans. Condominiums are an acceptable proof when you are applying for tourist visas such as Canada’s temporary resident visa wherein they consider properties as proof of funds.
7.) Investing in real estate teaches you a lot of financial skills, improves monetary dexterity, and makes you a lot more capable in handling your finances. These are extremely useful should you choose to pursue other fields that require financial know-how.
8.) You can pass your properties to your children when the time comes. Not only it will provide them passive income or a house and lot to live in, real estate will also open the doors to the world of investing.
9.) Shelter is one of the important human needs, along with food and clothing. When you rent out your properties you’ll surely have a tenant or two eventually. Some people also seek properties to stay in at popular vacation spots such as Baguio City.
10.) When the property has appreciated its value after a long time, you can sell it if need be for a hefty sum. This can be considered as a last resort in response to any situation that may render the property unable to generate a considerable passive income. And it also helps knowing that you have a fallback in times of financial emergencies.
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