When it comes to investing your money, there are so many options. You could put your finances into stocks, bonds, or even cryptocurrency. But one of the most reliable and popular investments is property.
A property investor will generally purchase real estate for one of two reasons. They might do so for capital appreciation, waiting for the property to amass value before selling it, or they might rent it out for a source of passive income. You can invest in any kind of property, from unused lots to apartment blocks to luxury homes. And there is a huge range of advantages in doing so.
If you are uncertain whether to invest in property in 2021, here are a few great reasons to consider expanding your investment portfolio.
More people are renting
With the rise in house prices, the growing population, and the current state of the economy, 71% of Americans claim they cannot afford to purchase a home. Millennials are struggling to get a leg up on the property ladder, and as a result, more and more people are renting rather than buying.
It is predicted that there will be an additional 4.9 million renters in the US over the next decade. Although this is bad news for young people, it is demonstrable evidence that investing in buy-to-let property is the way forward.
It’s a secure investment
People will always need somewhere to live, and as such, property is seen as one of the most secure investments there is. It’s been said that 90% of millionaires obtained their wealth by investing in real estate, and its popularity shows no signs of slowing. Investors looking for long-term gains with minimal risk could do a lot worse than putting their money into the property market.
It’s easy to understand
Many investments like stocks, shares, bonds, and cryptocurrency are complicated and practically require a master’s degree in economics before you can fully understand them.
Property, by comparison, is relatively simple to get to grips with. You don’t need a lot of specific knowledge to get started. In fact, merely by adding some value to your own home, you’ve begun the process of property investment,
You have complete control
When you invest in property, you are in complete control of the whole process. You can choose which properties you will invest in, the tenants who rent from you, how much rent you charge, and how you manage the property.
You can be as hands-on as you like, and if you want the income with none of the hassle, you can hire a property management company to take care of the day to day administration.
A reliable passive income
The main reason investors do anything is to make money. And property is one of the best ways to get a high return on your investment. Having a property portfolio requires little work on your part once you are up and running, and you can sit back and enjoy your regular stream of passive income.