Real estate has always been a staple of the investment world, but lately, there have been many newer options available, which has led some people to overlook or forget about real estate investing. With all the talk about crypto (which requires a low buy-in and promises high returns), it seems like not a lot of people are interested in buying real estate anymore. Here’s why this is a bad idea and why real estate investments are still a smart move 2024.
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1. You Get Better Access to Information
A decision to invest should always be based on something factual, which means that it directly depends on your access to information.
With the internet, finding properties is easier than ever. You can explore listings, compare prices, and even take virtual tours, all from your favorite chair. Real estate platforms and apps help you browse investing options, ensuring you find the best deals without stepping foot outside your home.
Virtual assistants are becoming a secret weapon for real estate agencies. These professionals help manage property listings, set appointments, and handle administrative tasks, making the process smoother for both buyers and sellers. It’s all about speed and efficiency, and virtual assistants help agencies respond faster to market demands. Not only that but there are also virtual assistants for real estate investors, which means that you get some help in finding the properties you need.
The real estate industry is easier to follow than ever before. Blogs, online magazines, and even social media offer up-to-the-minute insights. This way, you can stay informed about market trends, investment tips, and the latest property developments.
In the past, you had to go through newspaper real estate listings to find your options. Today, you can access extensive property databases and filter all the properties by price, location, and amenities, which will allow you to find exactly what you’re looking for. It’s a lot faster way to explore what’s available on the market.
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2. Real Estate Investments Offer More Stability Than Other Markets
No investment is 100% safe; however, when compared to your other investment options, real estate investing really seems like a more stable choice.
Even during economic downturns, the real estate market shows resilience. Property values may dip temporarily, but historically, they rebound over time. Unlike stocks, which can crash unpredictably, real estate typically experiences steady growth. This makes it a more reliable long-term investment during uncertain financial times.
Real estate offers something stock and cryptocurrencies can’t: a physical, tangible asset. This means less daily volatility and a more predictable growth trajectory. You can literally see and touch your investment, offering peace of mind that digital assets or stock certificates might not provide.
Real estate investments are known for their steady, long-term appreciation. While you may not see immediate, flashy returns, your property’s value is likely to increase over the years. This makes real estate a solid option for investors looking to build wealth gradually without taking on too much risk.
Managing a real estate portfolio feels more straightforward when compared to the complexities of stocks or cryptocurrencies. You don’t need to watch the markets daily or deal with technical jargon. Properties can be leased, renovated, or sold with clearer timelines. This gives you a greater sense of control.
3. Real Estate Investments Give You an Edge Against Inflation
In 2024 (and earlier in 2023), the word on everyone’s lips was—inflation. Well, this is why an investment in real estate, as a hedge against inflation, seems especially appealing.
One major advantage of real estate investing is that property values often rise with inflation. As the cost of living goes up, so do housing prices. This means your investment typically appreciates over time, offering a built-in hedge against the devaluation of the currency, making it a safer bet.
As inflation pushes up the cost of living, rents often increase to match. This makes real estate a strong inflation hedge, as landlords can adjust rent prices to keep pace with inflation. You see, only with rent are you in direct control of your returns. Sure, you cannot increase it indefinitely, but it’s still more control on your part.
During inflationary periods, tangible assets like real estate tend to perform better than cash or bonds. While inflation eats away at the value of currency, property values generally rise. This makes owning real estate an excellent way to preserve and even grow your wealth during inflation spikes.
Holding onto cash during inflation means watching its purchasing power shrink. But real estate investing offers an alternative by providing not just a safe place to store your money but also an opportunity for it to grow. With rising property values, your investment outpaces inflation, leading to better long-term returns.
4. Real Estate Investments Can Provide a Passive Income
Owning rental properties is one of the most popular ways to generate passive income. In fact, if you say passive income to a random person, the first thing that they’ll have in mind is rental income. A lot of people don’t understand dividends, but everyone understands rent.
By leasing your property to tenants, you receive regular monthly rent payments. It’s a relatively hands-off investment that can provide consistent cash flow with minimal day-to-day involvement once the property is rented.
Commercial properties often offer a unique passive income opportunity. Businesses tend to sign longer leases than residential tenants, which provides more stability and less turnover. With commercial leases, you can often charge higher rents, resulting in potentially greater returns on your real estate investment.
With vacation rental platforms like Airbnb, you can easily monetize your property during high-demand periods. These short-term rentals often generate more income than traditional leases, especially in popular tourist destinations. Plus, you have the flexibility to use the property yourself when it’s not rented out.
Real estate investing gives you the flexibility to choose between long-term leases or short-term rentals. Long-term tenants provide stable, consistent income, while short-term rentals can offer higher rates during peak seasons. You can switch between the two strategies depending on market conditions or personal needs.
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Wrapping Things Up
The biggest downside to investing in real estate is the fact that you have to commit more to get into the game. You can buy hundreds of dollars worth of shares, but outside of going to some real estate investment companies, you cannot buy hundreds of dollars worth of property. While the buy-in is a bit steeper, for anyone who can afford it, in 2024, there’s nothing better you could do with your money than investing in real estate.
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