Buyer Considerations – Where Do I Put My Money?
With the past 8 years, including a deep recession and major investment losses, nearly everyone is concerned about financial security after retirement. Despite the fact that investment returns have rebounded, there is still great concern with today’s investors as to where to put their money to:
- Be secure enough to sleep at night
- Realize an attractive return with minimal risk
Recent statistics show that investors who were sitting on the fence are now moving forward by investing in different areas. It could be argued that real estate will provide the safest and most attractive returns in the coming decade.
Listed below are the top 10 reasons why real estate should be considered the best option for your future financial security:
- The stock market is at record highs – That’s usually the time to cash out and look for the next best opportunity (Warren Buffet’s rule: sell when everyone’s buying). Also remember, don’t get too greedy, “pigs get fat, hogs get slaughtered
- Real estate over corrected and is still undervalued – No matter which indicator you look at, supply, demand, appreciation, replacement cost, cost to rent compared to home ownership, they all point to significant appreciation potential that could easily remain in the double digits for quite some time.
- Real estate is tangible – It’s not a piece of paper or a certificate that symbolizes value in stock or gold. You can drive up to the house and touch it. And that equals peace of mind.
- Use and enjoyment – Real estate can be purchased as a primary residence or second home. Based on usage, it can be the most satisfying way to invest your money.
- Real estate is safe – The risks associated with acquiring real estate are minimized by the historical returns that it has afforded over decades.
- Personal knowledge – Unlike other investment vehicles, most people investing in real estate have first-hand knowledge of the geographic area and trends associated with that area.
- Real estate can pay dividends – If you lease your property either seasonally or annually, the rental income can provide a very attractive return.
- Leverage – What other investment allows you to borrow at 4%, and realize a double digit return.
- Pride and ownership – The great American dream is home ownership. It also never hurts your ego to share stories about the second home or investment property you have.
- Memories – Some of the best memories in our lives revolve around the good times enjoyed with friends and family at home. Of all the considerations, this one in priceless!