When you’re making a plan for the future, most people understand the wisdom of investing their money. You can’t just let your money sit in a bank account. You have to make sure that it grows over time. And this is best achieved by having a diverse portfolio of investments.
Whether a person chooses to go with high, moderate or low-risk investments is often a matter of personal choice. The high-risk investments usually promise the most in terms of results, whereas the low-risk investments will lead to fewer dividends.
However, it’s also possible to diversify your investment strategy with traditional and/or turnkey real estate investment properties. Below are three reasons why property investing makes sense in today’s economy.
It’s not that traditional or turnkey real estate investments don’t appreciate or depreciate in terms of value, they do. However, you can usually see whether the market is going to keep going up or going down. It’s very rare for real estate prices to just drop all of a sudden or to rise all of a sudden. Any changes that occur are gradual.
So if you see that the market has started to fall and you want to sell an investment property, you can do so right away instead of waiting for a long time and then selling when prices are at their lowest. On the other hand, you can wait as long as you like if prices are going up and then sell off your investment property at a time when the market seems to have plateaued.
In this way, traditional and turnkey investing presents lower risks than many other types of investments. This makes it suitable for all types of investors, even those who only want low-risk investments.
Another reason people like traditional or turnkey real estate investing is because the results are tangible. When you buy stocks in a company, you’re really just getting a piece of paper in your hand, not a real company. However, when you buy a house or an apartment, you can see it with your own eyes and touch. When you can see what you’ve bought with your money, it just makes it more real for you.
Plus, consider the fact that you could potentially live in the property you purchase. When you invest in residential real estate, you’re also buying a place that could serve as a domicile for you or your family, now or in the future.
Also, a residential investment can serve as a vacation home or rental property, particularly if it’s in or near a popular vacation destination. You can have a home-away-from-home whenever you need to get away, and when you can’t escape daily life, you can rent to others who can.
Obviously, one of the top benefits of traditional and turnkey property investing is rental income. Still, some people think that keeping and maintaining a rental property is too much work to take on. This can certainly be true, however, there is help out there. You can purchase a turnkey investment property where most if not all of the repairs have already been completed. Also, you can hire a property manager or management company to take care of everything for you, including interviewing tenants, doing background and/or credit checks, collecting rent, and doing minor repairs and maintenance. On the other hand, if you’re a DIY kind of person, you can manage it all on your own. Either way, your property will appreciate while you continue to receive regular rental income.