As a new year dawns upon us, it is self-evident that real estate has become one of the most profitable businesses in the Western world (the U.S., Canada, England, Australia) because of massive immigration and an ever-increasing population. Here are a few reasons why investing in real estate is one of the best decisions a man can make in his life…
Once our politicians opened the floodgates of uncontrolled immigration to increase their vote banks, the West became a bottomless supply of international students and immigrants. These folks were and still are obsessed with the idea of coming to the West and gradually settling down here.
One of the first priorities of these students and immigrants after they arrive in the West is housing. Along with the increase in the native population, this has led to an increase in rent and housing prices in major cities such as Toronto, Vancouver, New York, and London to a name of few.
2. A Steady Side Income
The constant waves of immigration into the West and their ever-increasing housing needs isn’t going to stop for the foreseeable future, so why not profit from it?
Any wise man that invests in a condominium or a house with the purpose of renting it out later is guaranteed to acquire a steady side income that will add to his wealth. The real estate industry is booming and many people, including Asian minorities, are getting into it.
3. Learning From Asian Cultures
The fact that Asian minority groups are vehemently investing in real estate across America and Canada is noticeable to any person who doesn’t live under a rock. Historically and culturally, Asians have understood the value of land and the rich dividends it pays off in the long run. After all, they have fought countless wars over land. Talk to any real estate investor in Toronto, and he will tell you that the Chinese and Indians chase real estate property like mad dogs.
4. Never-Ending Demand And Supply
Those who invested in the real estate market of New York, Vancouver, and London have already earned an early retirement. Even though the property taxes and maintenance bills have largely stayed the same, the rent is sky-high in these areas. But that does not stop foreigners and students from coming in and renting out the apartments in these expensive places.
5. Time And Appreciation
Time is your ally when it comes to a real estate investment. Unlike a car or a woman that happens to be a depreciating asset as time goes by, the value of real estate always goes up.
The best thing about a real estate investment is control. If you work for someone else, you don’t control your job security. If you are married to some dominating control freak of a woman, you don’t control your finances. By investing in real estate, you are fully in control of your success or failure in building your wealth. You are in charge of your destiny provided you are always on the lookout for a good deal.
To every positive, there is a negative. There are a few disadvantages and liabilities with real estate investments that men should be aware of…
Real estate is taxed by the government, so you lose some income from your real estate profits.
2. Splitting Of Assets
In the event of a divorce, your ex may be able to get some money from your investments in real estate, provided she has a good lawyer.
Profit in real estate is also somewhat dependent on the economy. During a recession, it could be a little difficult to find tenants willing to rent out your condo apartment or house at the price you want them to.
Bargaining and negotiating skills are a must if you are investing in real estate. 100 percent of your potential tenants/buyers will try to trick you into renting/selling your investment property for a lower price. You will need to maintain your frame, be confident, be polite but strict, and hold your ground.
Remember, real estate is a seller’s market, not a buyer’s one. If you already have a property, then you are at an advantage. The people that want to live in your house are much more desperate for a roof over their head, and their emotions often run high, unless they themselves are investors like you.
It is wise to not make any deals with documents that are handwritten. Have all the documents printed out with signatures of the people involved in the deal. Always deal with reputed brokers and real estate dealers. The list of frauds being conducted in the real estate market is long and exhaustive. Therefore, it is wise to make sure you have your real estate lawyer involved for protection against sneaky fraudsters.
6. Being Proactive
Investing in real estate is not for the faint of heart or people who give up easy. You have to be constantly on the prowl for hot new properties being developed.
In conclusion, the pros of investing in real estate far outweigh the cons. Never invest in something you don’t fully understand. But by adding alternative investments to your wealth and playing your cards right, you can enjoy the blessing of higher returns with less risk.
Do your research, ask around, study about real estate investments, and dive into the market. You won’t regret it.