Most of the wealthiest businessmen in the world do not limit themselves simply to the world of business in terms of investment. People who are smart with their money tend to re-invest it and one of the best places that you can reinvest your money is in real estate.
One day we all hope to own our own home, and if we are lucky, the homes of others too. Though real estate has been a go to investment for decades, many people are starting to question whether or not it is worth it anymore. Here is our breakdown of whether or not real estate is worth the investment.
It’s a Constant Stream of Money
One of the biggest reasons that people choose to invest in real estate is because it is a constant stream of money. Once you have a home that is properly set up and ready to move people in, you can instantly start to rent it out.
The renting process isn’t necessarily very straightforward as there is a lot of legal work that you have to do in order to be able to rent out your home, but once you have completed all of the necessary steps, then you have a constant stream of income.
If you pick a house in a good area and ensure it is of a good quality, then you can charge a substantial amount of rent. In a modest estimate, the least that you could make in rent by month would be around four hundred dollars, depending on location and home type.
If you had several properties that were bringing in around four hundred dollars a month, then you have a really good income in terms of rent, on top of whatever you do as your main form of employment. Some people even choose to quit their main job in order to be able to be a landlord full time and gain a steady income.
Flipping a House
One of the main reasons that people choose to invest in real estate is because of the potential for profit that comes with it. You can buy a house at an exceptionally low price and turn it around and really make it a profitable business.
If you have the tools to be able to do a lot of the necessary manual labour alone, then you will only continue to cut your costs. Even if you can’t do a lot of the work yourself, hiring a labourer will still leave you with a huge amount of potential profit.
You don’t even need to sell your house in the more traditional way. The world of real estate is evolving every single day and you can get a cash offer on your house here as opposed to having to wait for a bank offer, which can be a very lengthy process.
We should be transparent that selling a house is not as easy as buying one, but if you have made the house desirable on the market and know the right people, then you can flip it surprisingly fast.
If this is something that you want to look into, then we recommend that you take the houses you flip to auction. This way you will have quick sales of your house and you can even reinvest any money that you make from selling your house into buying a brand new one on the very same day at the very same auction.
Prices for homes right now are as low as they have been in years, so we recommend making the most of it while you can.