Many commentators within the investment community are currently recommending all investors to turn their attention to the real estate market. The growing belief is that following mass bail out packages offered by the government, that the incoming recession, which of course is a dead cert now, will then hamper the growth of real estate prices and see many regions face huge drops in value. This is certainly an uncertain time in the industry right now, not only for investors but also for huge construction firms like the Cumby Group, who face uncertainty around what the coming months and years will look like.
In spite of what has happened in 2020 however, real estate has always shown to be a solid investment, and here is why.
In terms of market volatility, this is one of the few areas which doesn’t see great swings in movement. When compared to the likes of securities, real estate moves slowly, whether it is climbing or falling. Even now, following this recession, we will see prices change but they will not be collapsing overnight. Many investors looking for low risk investment look to real estate for this reason.
Unlike the investment in stocks and shares, this is a physical asset which you will own, and that too is something which investors enjoy. Being able to see and touch an asset gives you much more security than looking at numbers on a screen or a piece of paper.
Opportunity to Make Money
There is more than one way to make money from your real estate investment, and this is yet another attractive opportunity for those looking too invest. You have some who flip properties buying low, renovating and then selling quickly for a small profit, you also have those with long term ambitions to eventually sell and those who focus on renting out their properties. Additionally investors can choose to pool their resources in an investment vehicle like fund, which then focuses on large scale residential and commercial real estate investment.
Supply and Demand
Since the dawn of the real estate market, supply has never outstripped demand, and this continues to be the case. It is for this reason why so much pressure is put on governments to continuously build affordable housing. Given the fact that there is never enough, this means that investors can be safe in the knowledge that there is always a buyer, and always a renter available.
Despite the occasional dip, real estate prices have always risen, far above the inflation rate. This continue to be the case and it is yet another reason why investors, especially those who are in it for the long haul, are more than happy to put their cash in real estate and real estate projects. This is certainly the time for investors to be ready with their cash, to take advantage of the coming opportunities in the real estate market.