It has been said, time and again, that the most reliable source of income is passive income. Passive income usually comes in through investments made.
With the present world economy, jobs are unstable, and investments are the obvious way forward.
Investment is a way of having your money work for you. A wise investor would always look out for a safe and relatively stable investment.
Research and time has proven that one of such investments is Real Estate, with this time in history making it an ideal investment route to financial freedom.
Here are the reasons why:
You Can DIY
There is hardly anything you cannot learn on the internet these days, even though some are easier to learn than others. Real Estate investment is one of the easy ones. It is not one of those investments where you need long lectures to understand the mechanisms, you only have to know a thing or two about properties and their potentials. The Real Estate Investment is simple to understand, helping you grow at your own pace.
It Is Your Own Game
With this investment, you rule. You decide the prices, and bear the consequences or rewards. You depend on your knowledge, expertise and intuition for progress. In Real Estate, there are no hard fast rules, you decide what would happen and how it would. Now that is the definition of a boss!
You Get To Add Value
Someone once said, and rightly so, that business is a platform for value exchange. A business where you cannot add value is lacking in some measure. As an investor in Real Estate, you get to add value to the property, improving on it, and making it suitable for different needs.
Also, by adding value, you place more value on the property, which can interpret to more money for your pocket. It also interprets to customer satisfaction, and that is what business should be.
Income Growth (I)
One way you can grow your income in this investment is through appreciation of your property. As time goes on, and with your addition of some improvements, your property value appreciates. The increase in appreciation means more income with little or no work on your part, that is what makes the income a passive one. Easy life!
Income Growth (II)
Another way to generate ongoing income with this investment is through rental yield. With your tenants paying rents, you get an ongoing rental yield, which typically exceeds dividend yield.
Many investments are adversely affected by inflation, but the opposite appears to be the case with Real Estate. Inflation drives up rent, and population increase means more available customers with further increase in rent. In the presence of inflation, you stand a chance to get more yield, with a fixed initial investment.
Gone are the days when you had to advertise all over the place, trying to buy, sell or rent a property. With technology and the internet, it has gotten way easier. Your network is now a global one, and so your reach is also global. The flow of buyers and sellers gets steady once you know your way around a laptop and the internet.
While there are no worthy investments without risks, Real Estate is a stable investment, and with technology and the internet, this is the best time to invest in Real Estate, with multiple avenues as income source.