There are many types of business and investments available out there including real estate, bonds, stocks, etc. Each has rewarding points as well as risks. However, investing your hard-earned money means you need to be selective in choosing what type of investment that fits you including your passion as well as goals. With many options of investments available, it is just normal to find out which one is more advantageous and attractive than others. It is not always the high risk or big capital. It is also about the value, potential return of investment, as well as the amount of control involved. Thus, finding the right investment is like finding a perfect partner.
Comparing property business and other investments
Property business is getting popular because it is beneficial and rewarding. Of course, there are many sub categories in property business you can be specialized in. Here is brief comparison of real estate business and the others:
- According to several studies conducted in 2017, the rate of return on residential real estate averaged more than 7% annually. Meanwhile, another investment such as stock averaged less than 7%. It shows that real estate business has strong opportunity to gain success. It is because real estate business provides many ways for investors to gain profit. Investors can either purchase real estate property which will appreciate over time or rent it out to gain monthly cash flow.
- Real estate business is easier to learn and adapt. Compared to other type of investments, people will learn about real estate business easier because it is something that exists in real life that somehow familiar. Before, jumping into property business, new investors can try house hacking for example. This is a gentle way to jump into real estate business. They can learn how to be a landlord by renting out one of units or rooms of a home they are living in. They will earn monthly cash flow while learning more about how the business works. Once they are skilled and knowledgeable enough, they can start purchasing another property to invest in.
- Real estate business also provides more control. You can hold direct control of your investment portfolio. When you purchase a property, you own it and you can make your own decision about what changes you need to make. You can also decide when to buy or sell with your own decision. Of course you will have to consider many factors before making decision over your investment. However the final decision is in your hand. It may sound intimidating especially for new investors. However. Having more control over your investment means you have more control over your finance as well.
Real estate investment provides more opportunities for those who seek financial freedom. Thus, most people involved in business agree that property business is one of the most promising investments if not the best. Of course, it has its own risks and it is highly advised to take everything into consideration before making your own investment.