Why You Shouldn’t Write Off Investing in Real Estate

Why You Shouldn't Write Off Investing in Real Estate - My Life, I Guess...
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Today I’m excited to share the following guest post from Kayla of ListenMoneyMatters.com

No matter what age you are, or what country you live in, there are lots of different reasons you should invest for your future. There are also just about as many ways to invest as there are reasons.

Some of the most popular ways to invest in the U.S. are through an employer-sponsored retirement plan, in the stock market, or in real estate. Each of these has pros and cons, but for some reason, investing in real estate seems to scare people the most. Even if you have dismissed it in the past, there are reasons why you should invest at least some of your money in real estate. Here’s why I plan to invest in real estate for my financial future.

You Don’t Have to Have a Lot of Money

Although you may not think it can be done, you can invest in real estate without having tons of money to get you started. Through crowdfunding you can put your money together with that of other like-minded individuals. Together, through a Real Estate Investment Trust or REIT, it enables you to share in the investment as well as the profits.

REIT’s are like mutual funds because they allow investors to diversify their money in order to gain steady income.  Investments are spread over several different real estate properties, reducing risk and increasing growth possibilities.  Real estate strategies, developed by a knowledgeable management team, give the investors opportunities not available to the single investor. The pooled money is what makes this possible. Several companies offer crowdfunding for real estate, so it isn’t hard to find one on the internet. Fees are charged for their services, but over 90% of the income gained must be paid in dividends to the investors.

You Don’t Have to Manage Property

If you think you must be a landlord or manage property to invest in real estate, think again. You can easily purchase real estate with the sole purpose as an investor and not manage the property at all. How can this be done?

One option is to hire a property manager to do it for you. While you could do this on your own, you could also purchase a turnkey rental property and let someone else manage all of the hard work for you.  This way you can truly be a real estate investor without having to be at someone else’s beck and call 24 hours a day.

You Don’t Have to be Tied Down

Do you think investing in real estate will tie you down? It doesn’t have to. You can invest in real estate in an area different from where you live if you go through the right company. Some can help you invest as well as manage the property no matter where you live. This allows you the flexibility to live wherever you want and still invest wherever you want as well.

You Don’t Have to Have Tons of Experience

Experience is helpful if you are going to invest in real estate, but not required. Consider investing with a trusted friend or relative when you are first getting started. That way you can learn about the business from someone else and both of you can profit financially. Just make sure to cover yourself legally so you don’t get taken advantage of by your partner or partners.

Plus, real estate can provide a steady revenue stream for you even when you do retire someday.  ​

When you retire, your income will be reduced, but your home can be a source of additional income for you. A special loan for retirees called a reverse mortgage can allow you to access a portion of your home’s value as cash you can use to pay bills, fund vacations or take care of any other expenses. To apply, you must talk to a reverse mortgage lender, who will see if you meet the basic requirements for the reverse loan. For example, you must be at least 62. The home also cannot have another mortgage on it unless you are willing to use reverse mortgage funds to immediately pay off the existing loan. If you qualify, you will receive payments from the lender that you do not have to pay back until the home stops being your main residence.

These are a few of the reasons why you should invest at least some of your money in real estate. If you haven’t considered it before, maybe it’s time you should.

Kayla is a personal finance blogger in her mid-20s who loves to write about money topics of all kinds.

YOUR TURN: Have you ever considered investing in real estate? Why or why not?

Why You Shouldn’t Write Off Investing in Real Estate - My Life, I Guess #realestate #investing
About the Author
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Amanda is the owner and creator of My Life, I Guess... a personal finance and lifestyle blog that started back in 2013. She strives to keep the "person" in personal finance by writing about money, mistakes and making the most of it.

 

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18 thoughts on “Why You Shouldn’t Write Off Investing in Real Estate

  1. Upturn Real Estate Development

    As a leading in the field of real estate investment in the Middle East, In my humble opinion, real estate investment is the guaranteed way for profit and getting wealth.
    the risk in real estate investment is almost non-existent, just need a good plan, and the deep study before starting in this field.
    anyway, thank you for sharing your thoughts.

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  4. johny

    Wonderful article, learnt a lot from this article, crowdfunding was something new for me, thank you for sharing this article.

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  5. darshan

    Thank you so much for valuable information on real estate

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    To be honest, I searched in several places regarding real estate, but fortunately, this post explains some vital thing regarding this topic which I was looking for. Thanks for this lovely post..!!!!

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    Thanks for sharing such an amazing information.Interesting information found in some blogs related to real estate and the trends which are in flow.

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  9. Don Clark

    Investing in a real estate business is risky but the rewards that you’ll receive in the end is so much better than investing in the stock market. Anyway, just an opinion.:) Thanks for sharing
    this wonderful tips with us!

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  10. Sell your home

    I think investing in real estate is the best thing to do as you mention above. The thing that I like the most is that you can invest in real estate without having lots of money.

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  11. Jhunu das

    Nice post!
    Keep sharing your post with us. This post is interesting and informative too. I really liked the post., the way of writing the post. Thank you for sharing the post with us.

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  12. Susan

    Certainly that’s the biggest myth that if you want to invest in real state than you need to have a lot of money but the fact is opposite to that. You should need to have some tips for that and your article and have pointed those tips.

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  13. Marcus roy

    A very interesting article about real estate investment, the ides of crowdfunding and REIT is very interesting for those starting out. Thank you for sharing this.

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    Great Post
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  15. digimelon

    Real estate is a great investment choice in my opinion.

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  16. Victoria Fletcher

    Interesting post to read. Actually, I also love that idea and I think real estate investing is one of the healthiest businesses in the world. After buying land or house you can use in various ways, such as you can sell it after 3,4 years, you can use your property as a rental, or especially for property for rent for events. Thanks for sharing such quality information.

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  17. Jericho

    Very informative article. keep sharing it will help a lot
    Thank you :)

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