Despite the events of the past couple of years, the real estate industry is booming. In fact, as the global economy slowly recovers, the commercial real estate (CRE) industry is expected to be a big driving force behind it all.
Interestingly, 80% of real estate businesses expect their revenues to be better in 2022 than they were in 2021, which tells you everything you need to know.
Compared to other industries, real estate is without a doubt the most prosperous, which is why you should be very interested.
So, whether you’re a total beginner, a successful entrepreneur, or a business veteran looking to broaden your horizons, here are 5 exciting reasons to invest in real estate.
Jump to:
1. It’s easy to get ‘Fix and Flip’ Loans
One of the biggest concerns that people have about entering the real estate industry is money – specifically, how am I going to afford this?
Thankfully, getting real estate loans is a lot easier than it used to be. Now, you can get loans without needing to have tons of prior industry experience. Plus, you don’t have to show your proof of income. All you need to do is use private money lenders.
Before you know it, you’ll be an expert.
2. You can quickly boost your monthly income
Another exciting reason to invest in real estate is super simple: you can quickly boost your monthly income. It doesn’t matter whether clients are renting or buying from you, you’ll be living comfortably. Naturally, the more properties you invest in, the more your monthly income will grow.
Remember, real estate typically appreciates in value over time (hence why house prices are so high at the moment), so there’s plenty to be excited about.
3. Housing demand is increasing
The housing market is very healthy.
Young people are jumping on the property ladder for the first time, whilst older generations are looking to try new locations and invest in holiday homes. Basically, the housing market is doing a lot better than expected. Plus, now that the economy is recovering, it’s only going to keep getting better.
Therefore, by investing in different properties, you can breathe easily knowing that demand is high.
4. You can build equity
In the real estate industry, it’s very easy to build equity (the percentage of the property you own). To build equity, you can:
- Make larger down payments
- Pay off the mortgage faster
- Upgrade the property (e.g., add an extension)
The greater your equity, the more money you will make.
5. Lastly, you can benefit local communities
Right now, a lot of people – especially younger generations – are frustrated with house costs and rent rates. However, as a real estate entrepreneur, you can make your properties affordable whilst maintaining them in good condition. This way, young people, families, and the elderly will benefit from your integrity. It will be a great feeling knowing that you’re helping to make a positive difference – especially if you sell to a lot of first-time buyers.