Why Real Estate Investment Is 10 Times Better Than Other Investments?
1. Only need to do your due diligence once and it last for next 10 - 20 years. t is not like the stock you will need to watch the market every day or most of the times because of the liquidity risk. Once you can located the great job growth, population growth, and economic growth area, the Rental housing price will automatically rise because of the 3 points: 1. The build-able land near where the jobs are is less and less, 2. Population grow more and more. 3. Costs to build is getting higher and higher
2. Very stable and safe investment. This is also why the interest rate that bank or lender give you in buying a house is much lower than other investments. The bank is looking at the risk management. Because the Rental housing is the safest invest so bank give you the lowest interest. Most insurance companies, retirement accounts and financial products will put money into a stable Rental housing such as apartment to earn very stable, safe, but great profits
3. Cash flow is king, Rental housing is the most simple way to create cash flow, such as rental income. And housing is one of the most basic needs of people. 50% of people in the United States own their own home and 50% of people are renting. The researchers predicted that the future of the United States will be more people rent than own their own home like Europe. So Rental is a very huge market.
4. Easy to use financial leverage. Please think about if you go to invest or buy stocks, will bank easily loan you more than 80% of the investment money without the your personal collateral? The answer is not. But if you invest in Rental housing, banks will not only borrow you up to 80-90% of your investment but will also give you much lower interest rate without personal collateral because the loan has the lowest risk
5. Have a passive income. Just find a good management team you can enjoy passive income. Passive income is opposite of earn income. That means even if you go to enjoy life, travel, or even sleep, your money will be automatically goes to your account. If you are employee, small business owner, or most professional, there is very difficult to have income without working.
Above these 5 points are why real estate are 10 times or100 times better than other investment!