Is investing in real estate still consider a good investment in 2021? Before proceeding towards the analytical approach of answering this question, we will first discuss what real estate really is. How this business has changed the lives of millions.
From now on whenever you read or listen to the word real estate you should know that it’s something physical and related to property. Usually, we divide the real estate into four categories.
Residential: It deals with the homes, and residential property.
Commercial: It includes shopping malls, offices, hospitals, and hotels, etc.
Industrial: It includes the dealing of property relate to manufacturing, warehouses, and land using in delivering goods.
Land: Deals with vacant land like a farm, land in rural or undeveloped areas.
So, these were the main four areas of real estate. Now let’s come back to our main question, which says:
Is investing in real estate still consider a good investment
If you want a one-word answer, then it is YES! Real estate is still one of the best and safest investments out there. Now let us discuss the pros and cons of this industry.
According to Andrew Carnegie (was an American industrialist and was one of the richest men of America) about 90% of millionaire got their wealth by investing in real estate.
Investing in real estate is still a better option because of the increasing population of the world. More people mean the need for more space to live. Along with it, to fulfill the needs of that huge population demands land.
It’s true that this is the era of digitization where the world is going towards remote offices, work from home, and making a paper-free environment. All these factors have affected this industry a lot but still land is the basic necessity of a man.
Pros of Real Estate
- One of the biggest advantages that this industry gives is a source of passive income.
- Lower risk if the research has done correctly.
Cons of Real Estate
- The stress of buying and selling to a client.
- Demands a lot of research
- High investing cost
- Benefits in the long run
Now I would like to mention a statement by the billionaire, NewYork Times bestseller author, and investor Grant Cardone
“Real estate is real, and it’s always a good idea to put your money in real assets. But let me be clear: That doesn’t mean that all real estate is a good idea.
I only buy certain types of properties, generally multifamily ones in upscale locations that provide consistent cash flow and great potential for future appreciation.
I stay away from low-income areas and single-family homes. But even those assets are probably a better place to store your money than letting cash depreciate while sitting in the bank!”
Here are some useful tips for investing in real estate:
- Always start small
- Do a proper research
- Get basic legal knowledge about properties
- Beware of frauds
Always remember what Warren Buffet says:
When promised quick profits, respond with a quick “NO!”
Hope you got your answer. Have an amazing life!