Most investors have their money in the stock market, tied to conventional investments such as stocks and mutual funds, but many have no idea that investing in real estate could really give them a much better performance over time. Most people realize that the stock market is not safe, but they feel it is the only way to save for retirement, and typical investment advisers will not advise them on alternative investment - such as acquiring real estate - because they would not earn an easy commission in this way.
Invest in Real Estate Vs Invest in Stocks
For many investors, the stock market is simply not working well enough to generate wealth and ensure a secure retirement, which has made them consider alternative investment as a path to financial security. In order to help, the financial advisers from Meystel, a real estate investment trust, gathered five reasons why investing in real estate is better than buying stocks:
1. Cash Flow
Even the highest dividends paid by the shares seem to only pay close to 4 percent, which barely exceeds the inflation. And that's if you are only lucky enough! With real estate, it is possible to obtain between 8 and 14 percent of investment returns (ROI) with the income of turnkey-type holiday homes (furnished, equipped and ready to live) in the main tourist destinations in USA. Also, unlike stocks, which you have to sell in order to make a profit, rental income and other investment returns are made immediately and the property can still continue to be valued.
2. Easy Assessment
According to the experts from Meystel, compared to other investments, with real estate it is much easier to make an appraisal of the property - even if you have no idea how to do it - thanks to the appreciation. In addition, you can always schedule a real estate consultation with one of the leading real estate investment companies that are familiar with the area where you are looking for a property, and will be happy to make a price comparison for you.
In Meystel’s expert’s opinion, with stocks and other investments, it is much harder to determine the real value and it can also change from one day to the next. This is just one reason why investing in real estate can also be a much safer investment than the stock market - as long as you buy wisely and you adjust your budget to a desirable location.
3. Inspections
Similarly, real estate is superior to stocks and other investments because you can get an inspection of the property by a third person, as real estate consultants, price comparisons and a professional appraisal. Acquiring real estate that has been professionally inspected will provide you with greater peace of mind and help you to thoroughly evaluate the investment property. On the other hand, imagine how a corporation would react if they were asked to do an independent inspection of the company - by an inspector of their choice - before buying their shares.
4. Buy below market value
The company’s founder and CEO, Jay Meystel suggests that you can also buy real estate below the market value by taking advantage of pre-sale prices in new real estate developments, such as vacation rentals in the Riviera Maya in Mexico. This is a popular tourist destination that obtains occupancy rates of 80 to 90 percent in one of the best markets of vacation rentals in the world. Some developers offer a pre-sale with a substantial discount, while the property is still under construction, which means that buyers can immediately get a benefit when the finished houses are delivered and the prices go up to reflect the real market value.
5. Add Value
“You can almost always add even more value to a property after buying it, through upgrades or repairs” - advices Jay Meystel. This simple fact gives buyers even more control over their real estate investments, especially in comparison to stocks and mutual funds, where it is totally impossible for an investor to add value to them.
Advantages of Buying a Vacation Rental Property
Of course, there are many more advantages when investing in real estate, compared to the purchase of shares and mutual funds, including tax advantages, equity and - with turnkey holiday rentals in popular tourist destinations - buyers also enjoy the property of a luxury condominium or villa that pays for itself and produces a steady stream of continuous income ... What could be better than that?
Another Ways to Invest in Real Estate
Mr. Meystel shares with us that there are another ways to invest in Real Estate, besde buying a property. There are Real Estate Investment Trust.
Fore more information, follow Meystel on Twitter.
Comments(9)