If you believe that the markets are down as a result of Covid-19 and that now is not the time to invest in real estate, you will be astonished to learn that now is the moment to invest in real estate. The newly reduced cement prices, in combination with the discounts and rebates connected with Covid-affected areas, will help you get property at a lesser cost. This is why David Ebrahimzadeh, President of Corniche Capital says now is the best time to invest in real estate.
When compared to other types of investments, it yields excellent returns. It is more profitable than putting money in banks or buying gold since the value of real estate grows at exponential rates, unlike bank interest or gold appreciation.
1. Hedge Against Inflation
The positive link between GDP growth and real estate demand gives real estate the capacity to hedge against inflation. Rents rise as economies grow and demand for real estate increases. Higher capital values result as a result of this. As a result, real estate tends to keep capital’s purchasing power by passing some inflationary pressure on to renters and integrating some inflationary pressure in the form of capital gain.
2. Fundraising for real estate
Real estate crowd funding is a method for businesses to raise funds from a large number of people. It’s done through internet platforms that serve as a meeting point/marketplace for real estate developers and potential investors. Investors get debt or stock in a development project in exchange for their money, as well as monthly or quarterly payments in successful situations.
You register an account on these sites and either choose a portfolio plan based on your objectives, with brokers spreading your money over a number of investment funds, or explore and choose assets yourself, keeping track of their development through a 24/7 online dashboard.
3. REITs are a type of real estate investment trust
If you want to invest in real estate but aren’t ready to take on the responsibility of owning and maintaining properties, a real estate investment trust may be a good option (REIT). On major stock markets, you may purchase and sell publicly traded REITs. Many trade at large volumes, allowing you to enter and exit positions rapidly. REITs are required to pay out 88% of their earnings to shareholders, therefore their dividends are often greater than those paid by other equities.
4. Make an investment in your own house.
Finally, if you’re looking to invest in real estate, start with your own house. Homeownership is a goal that many Americans aspire to, and with good reason. Residential real estate has seen its ups and downs through the years, but in the long run, it typically gains.
The majority of people do not purchase a property outright, instead opting for a mortgage. Working toward paying off your mortgage and buying your house altogether is a long-term investment that may insulate you from the real estate market’s volatility. It’s frequently considered as the first step before investing in other forms of real estate, and it comes with the extra bonus of increasing your net worth because you now own a significant asset.
Despite all of the advantages of real estate investing, there are some disadvantages. One of the most significant is a shortage of liquidity (or the relative difficulty in converting an asset into cash and cash into an asset). A real estate deal might take months to finish, unlike a stock or bond purchase, which may be finished in seconds. Even with the assistance of a broker, finding the proper counterparty might take several weeks.