By: Karen G. Hatcher, CPM®
Real estate is tried and true. Real estate is a solid investment in a shaky economy for several reasons. First, unlike stocks, real estate provides tangible assets you can see and touch. This can provide security for investors who may be wary of intangible investments.
Second, real estate has historically shown to be a stable investment during economic downturns. While the market may experience fluctuations, property values tend to hold their worth over time. This can provide a reliable income stream for investors, whether through rental income or appreciation of property values over time.
Additionally, real estate allows for the diversification of investments. Investing in different types of properties can spread your risk and potentially increase your overall returns.
When investing in real estate during a shaky economy, it’s important to research and ensures you’re adequately prepared for potential risks. This starts with working with a knowledgeable Realtor who specializes in investment property. Realtors are not all “one size fits all.” Most have a niche. I have many stories of Investors that became clients when hiring my company, Sovereign Realty & Management, to manage their investment portfolio, only to find out that they purchased assets that did not provide the return they were looking for. We ended up selling those assets and purchasing a property that met their required return using a 1031 Exchange to defer any tax consequence. You must consult and hire an experienced Realtor who will complete a financial pro forma and market analysis based on your desired return before purchasing any income-producing real estate.
While investing in real estate may not be completely risk-free, it can be a solid investment option for long-term stability and potential returns, even in a shaky economy. Shelter is a basic need, and being a housing provider will provide you with a consistent return and a quality living option to someone else on their path to home ownership. The BEST Win-Win!
Check out the latest article I wrote for HerAgenda about how to become a property ninja! 🏠💪. And follow me on IG and Twitter @property_ninja.
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