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Is Real Estate a Good Investment?

Real estate is a popular investment option. You might be considering getting on board with it too. Before you do that, you should do your research to make sure it’s really what you think it is. You need to make sure it’s actually a good investment and that it’s worth the time and effort. 

Something to consider is real estate growth over time. How quickly or slowly is real estate appreciating? You should look at the growth of real estate over a long period of time instead of a short time span. Real estate generally has a steady growth rate, which is preferable over a slow growth rate. The growth rate of real estate falls between 3% and 5% per year. 

Like most investments, real estate is a passive way to earn income once you get everything up and running. There are a few things that set real estate apart from other types of investments. 

Rental income stays at pace with inflation

If you have rental properties as an investment, the amount of rent you charge correlates with inflation. When inflation goes up, so does your property’s rent. This can help protect you and your finances. 

You can make a good return on your investment

It’s very popular for real estate investors to buy a property for a low price. Then, you can resell it for a higher price once you’ve fixed it up. Be sure to look around and figure out what type of housing is in high demand. If you’re investing in more traditional ways, you don’t have a lot of opportunities to buy low and sell high repeatedly. 

You can use leverage to build wealth

When you get a mortgage to invest in a rental property, you can use that mortgage as leverage. Then, you can invest in other properties, which will disperse your risk and keep it to a minimum. Keep in mind that your properties should be selected wisely and managed well. By doing this, you can ensure that you have a cash flow positive system. 

The risk is lower and the return is greater than the stock market

When you are managing your real estate investments properly, they can perform better than the stock market. If you hold onto a home for a while, your risk continues to decrease. You can build equity in the home. The prices will go up over time, making your return greater. The values of the stock market change drastically and frequently. This can make the risk high and the return unpredictable.

These are just a few of the reasons that real estate investments can be a better choice than other popular investments. Investing in real estate comes with several great benefits to consider. There are many advantages in real estate over other types of investments. 

The best cities to buy real estate

Some cities are better for real estate than others. This is a major consideration you should make when you begin investing. Not all areas are the same and not all of these areas will give you the same success. You might consider investing in areas that have proven to work well in the past, especially when you’re first starting out. 

According to Chance Realty, these are some of the cities that are great to buy real estate in: 

  • Boca Raton, Florida 

  • Phoenix, Arizona

  • Atlanta, Georgia 

  • Charlotte, North Carolina

  • Sunrise, Florida 

  • Dallas, Texas

  • Detroit, Michigan

  • Hialeah, Florida

  • Orlando, Florida

  • Nashville, Tennessee

  • Ft. Lauderdale, Florida 

  • Miami Gardens, Florida

  • Davie, Florida

  • Miami, Florida 

  • Las Vegas, Nevada

Don’t forget to check the trends to see what is working well in these areas. Research is a very important part of a good investment. There are other areas that can be good investments as well. This list simply includes some of the best ones available. 

Overall, investing in real estate can be a good financial move. There are several reasons that it’s better than other types of investments, which makes it worth considering. As with any investment option, make sure you understand what you’re doing so you can make an informed decision about your finances.