No, investing in real estate is nothing like gambling. It’s like comparing apples to oranges. Yet, some people believe that the two are the same thing. Keep reading below why real estate investing is so different from gambling.
Some people believe that investments in the real estate industry are similar to wagering in gambling games. This isn’t a new misconception. Yet, an investment simply shouldn’t be considered gambling for many fundamental reasons.
Sure, investing in real estate and gambling on online casino sites both involve some risk of losing your money, making both situations uncertain. They also can both derive some high amounts of returns. Yet, they remain essentially very far from being one another.
Real estate investing vs. gambling
Investing and gambling aren’t the same, no matter how many similarities you may think there are between the two.
There are some investors who do nothing but speculate, which can make playing casino games, where you simply try your fortune and luck, look very similar to investing in real estate. However, that’s only a small percentage of investors who see their business as a game of luck. Most investors actually rely on data, recent trends, and lots of information before making any decision.
More precisely, investing in real estate implies planning for specific future returns because the real estate market is volatile, especially in a COVID-19 world where commercial businesses can’t pay rent, and residential customers are scared to make such a big investment in these uncertain times. Thus, investors need to rely on complex research to determine market conditions and trends and to calculate potential returns.
On the flip side, there’s gambling. An activity loved across the globe that keeps on growing in popularity due to the COVID-19 pandemic. Gambling involves uncertainty: players can either lose all they have wagered or gain a lot more money than they would have ever imagined. Online gambling wins rather rely on the luck of the player and, obviously, how good the online casino platform is.
However, investments in real estate don’t simply rely on decisions based on good luck. They likely rely on well-though decisions and well-devised steps. Real estate investors first analyze the risk factors of a project and avoid high-risk investments, particularly because the amount of money of investment is really big in this industry. And, so would be the loss.
Now, there is a certain degree of gambling associated with investing. That’s because some investments hold risks, although real estate is not about buying blindly and hoping for a profit.
In gambling, you can get lucky and win, say, five hands of blackjack or slot machine games in a row, but if you bet on the sixth everything you have earned so far and you lose, you’ll.. well, lose everything. The same concept can apply when it comes to real estate investments. You can win some significant profits from selling a few properties, but if you don’t keep on making smart investments, you could lose everything you have earned up to that point.
Every investment, both in real estate and gambling, should be thought of as a risk vs. reward situation. Not every property, nor wage, will offer the same upside.
What can the real estate industry learn from online casino platforms?
The two industries are fundamentally different. And, as we’ve explained above, they involve different types of risks and strategies to minimize them. However, despite their differences, it doesn’t mean that the two industries have no connection at all. In fact, the real estate industry may have a lot to learn from the igaming industry.
Both markets are really competitive. While the online gambling market includes millions of providers, the real estate business includes from 4 to 6 million agents globally. But, it seems that the gambling industry offers an advantage to providers that most realtors don’t see: business happens online.
Thanks to the nature of the business for online casino game providers, it can be easier to stand out from the crowd than it is for realtors. But realtors should learn from them!
A unique virtual experience
One of the greatest advantages of the online casino industry is that it provides convenience. In other words, it allows players to engage with their favorite casino games from anywhere in the world, which was particularly useful during the COVID-19 pandemic. Take Vera and John Casino online platform, for example. Vera and John Online casino provides live casino games where real dealers offer a player experience similar to what gamblers would experience in land-based casinos.
On the flip side, the real estate industry still relies heavily on face-to-face meetings and house tours for their customers, which can be a major downside in such uncertain times when most consumers fear social interactions as they might get the virus. Well, the idea of using the virtual world to attract customers and sell can be adapted by those who sell real estate. By allowing homebuyers to see a property virtually without actually having to visit it, it can be a great way to improve consumer experience and provide increased flexibility.
The online gambling industry gets a bad rap for being untrustworthy because there are some providers out there who aren’t legit and scheme their players. However, that’s only a small percentage of providers that players should obviously avoid.
To combat the mistrust that some players have, reliable and trustworthy online casino providers ensure transparency, such as adding easily readable guides and rules on their websites. They share a lot of information with players to help them better understand casino games and how to improve their odds of winning. If you were to read a Vera and John Casino review, you’d see that most players highlight the fact that this online casino provider ensures transparency.
The real estate market also deals with some sort of mistrust from homebuyers. It can handle it in the same way casino game providers do: being transparent on their websites through content that explains the industry to the clients, just like Vera and John casino does, and offer advice on how to make a good real estate investment.
Real estate and online gambling may be different, but the two can use the same strategies to enhance their online profile better and overcome the challenges consumers in both industries deal with.