Talk to any investment expert, and they’ll suggest you to invest in real estate. It is one of the safest investment options with incredible benefits. The only downfall? You need a good amount of money to invest in real-estate. Houses are expensive, but they’re sold at a high price as well.
Look at stock exchanges, the markets are doing well. However, many experts think a 2008-like scenario is just round a corner, and recession might hit the economy at any given time.
President Trump has announced some changes to the economy, but it will be a while before the come into effect. Right now, your safest bet is to turn to real estate.
Here are 5 signs why real estate is a good investment:
- Demand for Rented Properties
It’s simple. Owning a property makes you money. While most people only think of the resale value, they forget to take into account rent, which is a recurring payment that you receive every month.
The gains are impressive, especially when you take the monthly income into consideration. Also, it gives great profits in the long-run. The longer you wait to sell, the more profit you can make.
- 2. Stocks are Falling
While some may disagree, most experts believe that a fall in stocks means an increase in real estate prices.
The simple demand and supply formula is applied here. When it comes to investment, buyers or investors have limited number of options. For example, someone with $50,000 can either invest in stocks, real estate or precious metals.
If the stocks are doing, the person would invest a larger sum into stocks, increasing their prices. However, when prices begin to fall, he would withdraw money from stocks and invest into other options. In this situation, real estate is the safest bet.
When a number of people withdraw their money from stocks due to falling prices, they would look at real estate, causing demand to go high. As a result, prices would go high as well since supply is limited. This would cause investors to make a profit.
- More Development
Trump is planning to reduce taxes and develop the country. This would cause influx of more investment, which results in high prices.
If you look for luxury apartments downtown LA you will realize they’re high in demand. This is because there is going to be heavy development in this area, which has made people take notice and invest there.
Many people are also moving to this region and looking to rent a property or invest.
Now is the right time to make a move. Prices have started to increase just now, if you haven’t already invested, take a step today.