Most billionaires make their wealth by investing in real estate-residential and commercial. Of course, this is easier said than done.
Real estate is expensive. It is not an easy investment to pick. You’re going to be locked in a mortgage for 20 to 25 years. If you’re lucky to have the money, you can pay the real estate property in cash.
Still, is investing in residential real estate the right thing to do with your money?
You can save a lot of money by buying a preselling house in Tanza, Caviteor other provinces.
Real estate developers typically presell properties at a lower price than when the property has already been developed. This is a huge risk for someone who’s a beginner in the investment world.
You’re trusting a developer to make good of their promise to build these houses or apartment complexes. When you buy a preselling property, you are investing in something you haven’t even seen.
That’s complete trust, so you need to make sure that the developer is reputable and legitimate and has a good track record.
Own Rather Than Rent
You can lease a lot, build a building there, and rent it out to tenants. You’ll pay the landowner a couple of thousands of dollars a month, but for the most part, the money goes to you.
Although it sounds like a practical plan for someone who doesn’t have land to build on, you technically don’t own anything in this scheme.
The building that you build will be turned over to the landowner in a matter of time-20 or 30 years down the road, for example. Soon, you’ll have no building to rent out.
That’s why it’s much better to invest in owning a piece of land rather than renting one. You control what happens to that land. You have the title under your name. In case something happens to you, that land is passed to your next of kin.
It’s for the Long Haul
Residential apartments are for the long haul. You’ll have to prepare for this type of investment. You’ll pay for the mortgage using the money you make from the rent. Sometimes, that might not even be enough.
But you’re doing this for the future.
Twenty or 25 years down the road, when you’re retired and finished paying off the mortgage, you can finally reap the rewards of your sacrifice. You’ll sit on your front porch and receive the monthly payments from your tenants.
You won’t even have to worry about your other investments. Rental payments alone can carve a comfortable life for you.
Real Estate Appreciates
There is no way real estate properties are going to depreciate over time. Even low-income areas are better than letting your money sit in the bank.
You may invest in stocks and bonds, but those are riskier than buying properties. Simply put, it’s always a good idea to put your money in real assets.
While you may not have the money for commercial complexes and buildings, you can buy a residential property, fix it up, and rent it out or sell it at a higher price.
You can start a buy-and-sell business based on this model. Real estate is usually a safe and low-risk investment as long as you can pay the mortgage on time.