Despite one of the largest slumps in history, the real estate market has recovered well over the past few years. As millennials continue to grow older, they’re starting to see the advantages of investing. Perhaps most importantly, millennials are moving away from more traditional investments likes stocks and bonds, and are more interested in investing in real estate.
So, here’s a list of the top 8 reasons it’s a great time to invest in real estate, with help from our very own Matthew Nagy, Managing Member of Graystone Acquisitions, which is a subsidiary brand of Graystone Investment Group.
#1 It’s Tangible
Unlike stocks or bonds, real estate is a tangible investment that you can see and touch. Since Wall Street money managers are not controlling your investment, you have much more control over what happens. You can check up on it, check its value, and upgrade it to increase its value.
#2 Multiple Exit Strategies
When you invest in the stock market, your exit strategies are limited. If you’re finished with a stock, all you can do is sell it back at the price being offered. With real estate, though, there are several exit strategies. You can sell your property wholesale, flip the house, buy and hold to build equity, take advantage of seller financing, or rent-to-own.
#3 Real Estate is Limited
One of the best things about real estate is that it can’t be produced in a factory. Land is not being created, so it is a finite resource. Furthermore, building homes takes a while, preventing the market from becoming easily flooded with properties overnight. Therefore, when you purchase real estate, you’re purchasing a limited commodity that is in high demand.
#4 Prices Aren’t Manipulated by Wall Street
One of the biggest problems with purchasing stocks and bonds is that you aren’t in control of your investment. It’s difficult to be sure who is managing your money, and how much you can trust them. With real estate, the market is much more driven by traditional supply and demand, rather than hedge fund managers.
#5 Lending Has Loosened
Following the economic downturn, lenders tightened lending standards. However, lenders have loosened standards over the past few years.
Since private lending is so cheap right now, it’s easy for investors to take a small amount of capital and leverage it into real, long-term wealth. Furthermore, the Federal Reserve has kept interest rates low, which makes it easier for people to qualify for a home loan, helping flippers sell their properties quickly.
#6 Learning is Free
Real estate is one of the few industries where you don’t need a college education to succeed or earn serious money. Although there are plenty of scammers who will promise you their “secrets” for a bunch of money, there are plenty of great free resources online that you can use to teach yourself how to invest in real estate.
#7 Automation Continues
As more and more jobs continue to be replaced by automation, it’s possible that your job may be at risk. However, real estate is one industry where you don’t have to worry about losing your job. While certain aspects of real estate may be automated, your job as a land lord will never die.
#8 People Need Homes
One important factor of investing in real estate is that people will always need a place to live. Even in an economic downturn, where people are purchasing fewer and less expensive homes, there will be a demand for rentals. Real estate investors have job security based on the fact that there will always be a demand for quality places to live.
Your Next Step
Although we believe firmly that investing in real estate right now is a great idea, it’s something that takes time. So, the sooner you begin investing in properties, the sooner you’ll be on a path to long-term wealth.
For more ideas about why it’s a great time to invest in real estate, here are a couple of excellent articles:
- 7 Reasons NOW Is a Great Time to Invest in Real Estate (Entrepreneur)
- 8 Ways Real Estate Is Your Smartest Investment (Entrepreneur)
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay. We serve local and international clients who flip homes in as little as 30 days, as well as clients who hold high cash flowing rental properties.
Unlike other wholesaling groups, we provide clients with a turnkey process at no extra charge. We find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years.