“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.” –Marshall Field
Almost everyone dreams of becoming wealthy, and it is for this sole reason that individuals who have amassed a fortune would decide to venture on investment. Apart from growing your existing wealth, investing your money is also an excellent way to plan for the future—to have a safety net should anything go wrong. However, even the savviest and smartest entrepreneurs would still have their decent financial plans fall into disarray. When it comes to a smart investment, you do not only need to possess a sound financial acumen, but you would need enough foresight to diversify your assets beyond bonds, mutual funds, and stocks. One exceptional way to grow your wealth is to invest in real estate, and there are several ways to do it: Renting out purchased units in Bonifacio Global City, selling purchased land, etc. After all, land is a limited resource, so it is only natural that the demand for it would only increase over time.
Here are some of the reasons why real estate is a superior investment and why it is the premier choice for protecting and growing your wealth.
1.) Creates a positive cash flow
Without a doubt, a lot of people would invest in rental properties because of the extra money it generates for the landlord. Everyone needs a place to stay and with the massive influx of young professionals surging to live in the city to look for better work, investing in real estate is a pool of opportunities for smart investors. This positive cash flow creates an ongoing monthly income that allows you to spend your time building a business, reinvesting in more real estate or even traveling. This type of investment is far more stable and predictable than any other sort of businesses.
2.) Use leverage to multiply asset value
One interesting characteristic about real estate investing is the ability to leverage debt several times your equity. In a sense, this would mean that you are allowed to buy more assets with less money while significantly multiplying the asset value while increasing equity as soon as the loans are paid down. Using this interesting feature to its full advantage would lead to a gradually increasing cash flow well into your retirement years.
3.) Loan in paying down
Buying rental property using mortgage would mean that your tenant is actually the one paying the mortgage payment which would result in the increase of your net worth each month. This is because a rental property is essentially a savings account that grows spontaneously owing to the loan pay down. And the best part is you do not even have to deposit money each month. You may owe a significant
amount of money on rental property this year, but on the next year, you might find it significantly lower because your tenant is making the payment for you—essentially making you a fraction wealthier.
Technically, there is no guarantee that the value of your property would go up. Recessions do exist, and they are a real plague to real estate investors. However, there are instances wherein values do climb higher and higher. It might be a risky investment, but when you get your positive pay-offs, they really are quite steep. Do not enter into the business for a temporary period; see to it that you could truly see yourself doing it for life. Your properties would continue to climb about a decade for now, and it will be worth far more than what you are currently paying for it today.
5.) Pride of ownership
Having the right property in the right location with the right tenants creates a remarkable pride in ownership. This is worth more than any other asset there is. True enough, no one can ascertain the future value of any investment, but once thoroughly studied and researched, you would realize that a real estate investment is superior as it is positioned strategically to continuously benefitting those who truly understand its advantages and know how to utilize them.
Learn how to play the real estate game wisely and thoroughly scour your neighborhood for great deals. Learn how to evaluate real estate investment and know how to finance any properties you want to buy. Treat it like a business and nurture it as it grows. After you have successfully learned how to fully take advantage of its potential, you will realize how it is very well worth the journey and effort.