Buying real estate – to either let or flip – has long been the backbone of the investment world. Real estate is seen as a ‘safe’ way to divest money and bring in long term wealth, even with the ups and downs in the housing market that we regularly see.
But with so many other things to think about investing in, such as the stock market and cryptocurrency, is real estate still a good idea? Of course, every person is going to have a different experience of real estate investment according to their goals and budget, but should you even think about it at all? Let’s get into the idea below.
Real Estate is Quite Diverse
Residential property, commercial property, apartments, single storey properties best for retirement living; there’s a lot of property types out there that you can invest in. This makes real estate one of the most diverse types of investment you can get involved in.
That can keep your money safe as time goes on and there are crashes in certain areas of the housing market. If you’ve got more than one type of property on the portfolio, you’re less likely to see devalue yourself.
It’s Easy to Add Value
Adding value to a real estate investment is relatively easy and approachable. This can be quite rare in the investment world; even other tangible assets have a limited amount of interactivity!
If you invest in collector’s items, you can store them safely, keep them clean, maybe touch them up a little from time to time, but you can’t change them for the sake of value in the way you can physical property.
The more you walk around a property, the more potential you’re going to see for this. Convert that room, renovate the kitchen, add on a garage, pop an ensuite onto the master bedroom, extend into the garden – the list of changes can go on and on. And the best news? All of these changes are going to increase the value of the property by at least 5% each.
You Can Leave Tangible Assets
Tangible assets are always a sign of a good investment. If you can physically visit or keep the investment in question, you can be sure you have, you’ve secured it, and you can keep it in good condition. This can make selling on quite easy one day, or if you’d rather, you can transfer the property onto family members like your children when the time comes.
With a tangible asset, you know what you’re dealing with. You know where the potential lies. Indeed, you can see up close and personal what needs work and what needs improvement, and as we noted above, where you can up the value of the asset and make sure you get the maximum return on your initial investment.
So, in 2024, is real estate still a good idea? We think so. It’s a great tangible asset that’s highly customizable, even for those with lower budgets.