It is often said that the three keys to financial success are working hard (and smart), saving money and then investing it. Unfortunately, when it comes to the investment part, many people find themselves at a loss as to what is the best way to invest their money. There are Abdo Romeo, after all, so many investment vehicles available to them. From stocks to bonds, to small business enterprise and onto real estate; people with some money to invest would surely be forgiven for posing questions as to which the best way for them to invest that money.
Now without endorsing it as the best investment vehicle for everyone, as circumstances tend to differ greatly from one person to another, we would venture to say that real estate remains one of the best investment vehicles. We say that, the current crisis the real estate sector is going through notwithstanding. It is especially a good investment vehicle for people who have huge sums of money that they are looking to invest in the long term.
But why do we describe real estate as one of the best investment vehicles available, you ask. Well, our description of real estate as one of the best investment vehicles available is based on a keen look at a number of advantages it comes with.
One of the biggest advantages associated with real-estate investment is to be found in the fact that this is one of the few investments that you remain in total control of. You get involved in the management of your property, deciding what to do with it, and when to do so. It is unlike the case with most of the other open investment vehicles like stocks and bonds. These, more often than not, involve giving your money to someone else to manage – and then only having them give you a portion of the returns they earn with YOUR money as they deem fit. In real estate investment, you remain in the control seat all through. And since it is your own money in play, you avoid making major mistakes that the people charged with the management of capital in the other cases tend to make, it not being their own capital anyway.
The second advantage associated with real-estate investment is to be found in the fact that although it is an investment you remain in charge of, it is nonetheless one that gives you the opportunity to earn what is termed as a ‘passive income.’ So unlike investment in small business enterprise (which is another vehicle that gives you the opportunity to remain in control), with real estate investment, you don’t really have to run around that much trying to get things done; once you have the investment in place.
The third advantage associated with real-estate investment is to be found in the fact that it is one that offers potential for remarkably huge returns. The real estate market is one that is characterized by never ending cycles of booms and busts. And if you can somehow master the art of knowing when to buy and when to offload prime pieces of real estate, you could find yourself doing very well in a few years time. It is not unheard of people getting as huge as 500% returns on investment in real estate; like where a person buys a plot for $10,000 during a ‘bust’ period and then manages to sell it for some $50,000, say some five years later, during a ‘boom’ period. Of course, it is also an investment vehicle with potential for major losses. But with a few prudent steps, you can drastically reduce the chances of your suffering such major losses drastically.