In these unstable economic times, it makes sense to think outside the box for ways to build wealth and protect your savings. Here’s a list of five reasons to consider investment property as a way to do just that. Investment properties are a growing area and with the housing market recovering, they are becoming more popular among people who have been burned by the financial system in the past.
Land Has Value
Even putting aside any improvements that might be on a plot of land, historically land itself is a valuable asset. Land represents potential, and there is never a shortage of businesses and people looking to buy land for new projects. That keeps the value of land high. Consider purchasing a plot of land if all the signs point toward the value appreciating in the future.
Long Term Protection
Stocks, bonds, and other assets have limitations in their use. A company that issues stock today might not exist in ten years. Proper upkeep means an investment property can grow in value for as long as you hold it and continue to make improvements. Making sure you relationship with professional repair services is good can often get you a discount if you are looking to own a large number of properties. Trying to think long term with your investments can help you be set for life.
Financial assets frequently experience shifts in their price due to speculation or other factors unrelated to their fundamental value. On the other hand, there is not much that can influence the price of land besides its basic value as a potential building space, so there is less risk of wild price fluctuations.
Hands on Improvement
When you own an investment property, you can make improvements to the space, fix it up, and turn it around to bring it back to the market more valuable than when you bought it. This is a real DIY approach to investing, and it can be very satisfying as well as lucrative.
Holding stock in a company is only worthwhile if you can sell that stock for more than you bought it for, and in the stock market there are no guarantees that such will be the case. On the other hand, when you buy an investment property you have a hand in how valuable the property becomes. It is your work that makes the house more valuable.
If you think investment property sounds like a good fit for you, get in touch with a real estate agent to explore your options. These professional resources are great for learning about investment properties and how to get started in investment property purchasing.
Meghan Belnap is a freelance writer who enjoys spending time with her family. She also enjoys being in the outdoors and exploring new opportunities whenever they arise as well as researching new topics to expand her horizons. You can often find her buried in a good book or out looking for an adventure. Meghan recommends an online service provided by Home Vestors of America, Inc. to help find properties to buy and invest in.