Real estate may not be the most obvious investment. When deciding where to invest their money, most people opt first for stock market accounts or long-term bonds. When we think of investments, this is what we most often consider, completely passing over real estate. Sometimes, it makes sense. Real estate can be a very long-term investment, one that it can be difficult to liquidate if you need access to your money. There are, however, a number of benefits to investing in real estate that cannot be found in any other asset.
Unlike other assets, real estate is a very safe investment. It does not disappear like stocks or bond can, when a bank or company goes under. The land or house remains whether or not the original company does, making it a lasting investment that does not rely on performance of others in order to continue to accrue money.
Almost Always Appreciates
Real estate, unlike just about any other investment, almost always appreciates and almost never depreciates. This is because cost of living and the scarcity of land will always exist. Even with a burst housing bubble, which depreciated the homes of many people around the world, that value can (and is) being made up as real estate comes back into demand.
Has a Function
The greatest benefit of a real estate investment is that it can be continually used, even while it is appreciating and gaining value. Houses can be lived in and rented out, making them the perfect investment for any person. In fact, unlike CDs or money market accounts, which are best when left alone, a house or other real estate investment is best when it is used. Using it a residency is a great option, but using your investment as a rental property can double the value of your investment.
Because real estate, especially in the long term, always yields great returns, it is a great investment for even the wariest investor. Some people stay away from investing entirely, because of the risk, but real estate has very little risk and very little chance of going south, as long as the investor has the proper the funds.
Your real estate investment holds on to its value, despite what happens in industries around the world. Stocks, bonds, CDs, etc. can all be affected by small announcement or changes in the global economy. This is not the case with real estate. These investments hold their value much better and for much longer than other types of investments.
Relatively Easy to Invest In
It takes a lot of work to become well enough versed in the world of stocks and bonds to be able to effectively invest in that asset. Real estate investment, on the other hand, is easy to learn, and there are always professionals standing by to help you with your investments.