3 Benefits of a Property Investment
Many investors, both novice and experienced, understand the substantial value of property investment. Property has typically been considered a reliable investment historically because of its “real” value — in contrast to investments in the stock market, for instance.
If you are new to investment, but are interested in starting, property is a potentially excellent place to begin. Read on to learn about some of the reasons why property investment can make a solid financial choice.
1. It Can Be Easy To Get Involved
Many first time property investors may be reluctant about getting started, in part because they believe it will be prohibitively expensive. However, there are ways to get into property investment even with limited funds.
Co-investing with a partner is one option. For others, there are some types of short-term loans — like construction loans, for instance — that may grant financing for a property purchase, with a reasonable financial plan. In short, investing in property is hardly out of reach.
2. Appreciating Value Over Time
Property is generally considered a safe investment, and without substantial, negative mitigating factors, its value tends to appreciate over time. Thus, property can be a safe place to “store” money; you can make an investment, and with little in upkeep costs, allow it to be safe over time.
3. Opportunities for Passive Income
Investing in property also provides opportunities for passive income, potentially in several ways. Purchasing a home or multi-family space can allow you to rent, under both short- and long-term leases, and thereby earn a potentially steady amount of passive income. While being a landlord requires some investment — in terms of both time and money — if you are responsible, courteous to your tenants, and can maintain high-quality spaces, you can build an effective business.
4. Potential Place to Reside
Lastly, it is important to remember that for most people, their only substantial property investment is the home in which they live. Whether you are specifically looking for a residence, or are looking to increase your wealth, it is worth remembering that with many properties, you can do both.
For short-term options, a “fix-and-flip” property might provide a place to live while you improve it to sell. In other cases, a two-family home may offer a long-term residence, while also providing a steady source of supplementary income.
In short, there are many benefits to a property investment; the benefits above are only some of the reasons to get started.