Did you know that nearly 90% of the wealthy make their money in real estate? And of those who make their fortune elsewhere, the astute investor buys real estate to hold their money in.
Protection from Inflation
Ever since the U.S. dollar, which is used as the reserve currency of the world, was taken off the gold standard, inflation has been on the rise. That means the value of your money goes down and continues to go down steadily over the years. Despite this, real estate, as well as other similar assets, are able to hold their value over time.
This is the reason the cost of buying a house today is much higher than it was 50 years ago. It’s not that the value of property has changed much but that the buying power of your money has declined greatly.
Know Your Investment
Real estate is an extremely local market. As such, you, as a starting investor, would do best to focus on one area instead of chasing deals all over the place. Lands for sale at Hoppers Crossing can be great investments. If you’re familiar with the area, you’ll be able to tell if you’ve found a good deal. Take the time to walk around the area. Inspect the market and, as time passes, your mastery of the local market will allow you to branch out to other areas.
Beyond Holding Money
Real estate can be used for more than banking your money. One of the ways you can earn money through real estate is through flipping: the practice of buying a piece of property for a low price, fix it up and then sell it for a profit. Another way to go about it is to lease your property out to tenants.
Just make sure the rental income is greater than the mortgage cost and other expenses associated with owning the property and you’ll have leveraged your money to create more.