You may be also wondering if you should be investing your money in the stock market instead. Really, real estate investment is much safer than investment in the stock market – history bears this out. Read on for the top reasons to invest in real estate instead of stocks.
Real estate investment generates cash flow straight away
If you have checked stocks that pay the highest dividend, they pay 4% or less annually. This is not a bad come, especially when you consider that banks give you a return of just 1% or less, but this is only a little over inflation.
So, you won’t really create much cash till you actually sell the stock. With real estate, you can rent out your property and earn an excellent cash flow from it, of anything from 5% to 100% of the price of the property.
Real estate investments are easier to value
It is very easy to value a property. If you have seen a luxury property and don’t know if the price being asked for it’s fair or not, you can always ask a trusted estate agent to value it for you. As a result, you may get an accurate estimate from them, since they have special knowledge of the area. However,once it comes to stock markets, the prices change every day and every minute.
You can always negotiate to buy the real estate below the market value
Typically, during negotiations, the property owner agrees to cut down the asking price of the property. Of course, this does not happen every time, and it depends on exactly how desperate the owner is to sell – he may not agree to sell it below market price if there’s a lot of demand for the property.