How to Start Investing in Real Estate For Higher Profits
Real estate is one of the most secured investments because the real estate price will continue to move up (except during the recession, of course, but recession does not happen very often).
Stock Market Vs. Real Estate Market
The best alternative to real estate investment is investing in the stock market. Even though you can buy and sell stocks online, stock market investment is basically offline investment as you are buying and selling stocks of the company that are operating in the real world. The best thing about stock market investment is you can invest with a comparatively small amount. You cannot invest in the real estate market with $10,000 but with this amount, you can buy 10 Tesla stocks. Tesla is a profitable company, exactly 5 years ago (April 2017) Tesla stock was $60, and now it is $1000. You can expect the stock to double or even triple in the next 5 years.
Investing in Landed Property is Better than Investing in Housing Property
I believe investing in land is better than investing in houses. If you want to invest in real estate consider investing in landed property instead of housing property. Here are a couple of reasons why investing in landed property is better than investing in housing property.
Land cost less: Land costs less compared to a house. In my home country, you can buy really good land with $100,000 but this money cannot buy a house.
Price does not depreciate: With every passing year, the price of a house goes on depreciating, however, the price of land does not depreciate. In fact, it goes on appreciating every day.
Higher resale value: House does not have a better resale value compared to the land. House will continue to get old when the house age it will be difficult to sell for a better price. However, the land does not grow old, in fact, it will have better value.
Better security: Investment in the land is more secure compared to investment in houses. For example, houses can be damaged due to accidents, fires, for example, natural calamities, earthquakes for example. However, the land is secured against damages like these. Well, you can insure your house, but that will also become a financial obligation.
Real Estate Vs. Crypto Market
Let me ask you one simple question, how much money do you have? I am asking this question because the amount of money you have actually determines where you should invest your money. Let me assume that you have $100,000 and let me believe that this is your own money and not the money you borrowed from a bank or someone else. Now I will try to answer what happens when you invest your $100,000 in property or cryptocurrency. You buy a property worth $100,000. In my country, the value of property grows by at least 10 percent every year. If you hold your property for one year and then sell, you will earn at least $10,000 (based on the property growth rate in my home country), sometimes when the market is booming, you can even earn a 30-40 percent return on your investment. Let's say, you invested in bitcoin. Based on the current value, you can buy 2.2 bitcoin for $100,000. If bitcoin value doubles you earn $100,000 in profit, if bitcoin grows by 50 percent, you will earn $50,000, but what if bitcoin goes down. The price dropping cannot be ruled out because in the last bearish run it went below $30,000
How to Become Successful in the Real Estate Market
Location plays an important role in determining success in the real estate market. For instance, you will earn more profits by investing in urban property compared to rural property. Even though location determines how much money you can profit from real estate, it is not the only reason for profiting from real estate. There are a lot of things involved. For instance, how much money you have also determines your success. If you have a lot of money and if you have invested in really good property, you will profit more. If you do not have a lot of money and can not invest in good property, how can you profit? Let me exemplify, you will earn more by investing in a 5-year-old house compared to a 20-year-old house. The commercial value of your property also determines your success. For example, you will earn more profit by investing in a commercial building compared to a residential property. The type of property will also tell you whether you can be successful or not. If you invested in a house or a building, you will earn more compared to your investment in a landed property. Your ability to hold investments also plays an important role.
