Using real estate investments to increase personal wealth is the smartest, most practical strategy, and if you want to become financially secure or even wealthy, it’s the best thing you can do…and always will be. Why such a bold statement? Well, while investing in real estate to increase personal wealth may require a little more capital and more work to get started, there are several reasons why (if you do it right) it’s nearly 100% risk-free.
This may be hard to believe considering the impact of the recent housing crisis. However, with the right skills and knowledge, investing in property to increase personal wealth can be one of the simplest and lowest risk strategies, here’s why:
1. A persistent need
When you use real estate investing to increase personal wealth, you’re investing in something that has a persistent need…that is, unless people go back to being hunters and gatherers. People need a place to live, and there are A LOT of people out there, which means that real estate is a persistent need and (barring some catastrophic plague that wipes out the world’s population), always will be. Even in a “down” market, you always have the option of renting your property to someone until the market rises again and you can make a profitable sale.
2.Limited Liability
As long as you have adequate insurance on your properties, investing in real estate to increase personal wealth comes with VERY limited liability. In the stock market, your investment can go to zero, the same can happen when it comes to dozens of other types of investments. Real estate can NEVER go to zero. In the worst case, you can buy something when the market is high and not be able to sell it, but you can always rent the property until prices rise again.
3. You may already be an expert
Even if you’re not an expert in real estate investing, it’s as if you have at least one geographic area that you know very well: your own city or neighborhood. The better you know the geographic area, the easier it will be for you to predict property value rise or fall, it’s simply a matter of learning some VERY basic real estate investment principles to increase personal wealth. For example, if you can predict when many new jobs will be available in a specific area, you can make a fairly confident prediction of property value growth.
So if you’ve been considering the value of investing in real estate to increase your personal wealth, you don’t have to worry about the “right” time to start. You can start your education now and start using this very practical strategy to create more wealth and financial security for yourself and your family.
