Let’s share with all why investing your money in real estate gives you better opportunities to multiply your wealth than any other type of investment like stocks, Mutual funds, insurance, Fixed Deposits etc. With real estate as an option of investing, One can make money in many of different ways. Let’s start on daily basis with one by one steps in creating wealth through investing in Real Estate.
APPRECIATION IN MARKET VALUES
If we go through the statistics over periods of few decades, we have noticed that nearly all types of properties have increased value and given excellent returns on investments because of growth of population, increase in jobs, increase in incomes per capita and increase in capital i.e. buying power of an individual which is growing on rapid speed than the amount of new construction going. When you look at the long term prospective, people having more money consistently push real estate prices up by investing their money into more and more properties.
“Okay,” you acknowledge, “but that was then and this is now. Surely prices can’t continue to increase as they have in the past as market as has changed now a day’s?”
But my answer is, “They can and they will.” To keep my point and To see the future of Real Estate, just put together these dominant trends of Real Estate:
- Population Growth: You will agree with the fact that from last 20 years and looking at next 20 years, the population has increased and will be increasing at very rapid speed.
- Incomes: If we look into the income growth and calculate as per last 20 years data, you will also agree that in coming 20 years, employees, entrepreneurs, professionals, and business owners will have their income growth by atleast 100% .
- Vacation homes: Looking at the current scenario people are putting money into vacation homes as that is the best and cheap option available to invest money in. Most of the People in future will be having their own vacation homes so that they can move out of their hectic life and away from hustle and bustle of city and can live peacefully for some time.
- Echo boomers. Echo Boomers are the largest generation of young people since 60’s basically who have born post 1970. This generation is entering into the housing market to buy homes now and investing into real estate.
- Restrictions on development: Looking at the legalities and illegal things happening in past, you will appreciate that government has taken lots of steps towards real estate industry. During the next 20 years, zoning, environmental laws, building regulations, and land shortages will continue to restrict development in those areas where demand is very high from end users side.
- Construction costs: Looking at the past , in future in coming 20 – 30 years, the costs to construct houses or any other types of buildings will always increase due to inflation of market and will follow their past trend of going up.
- Investors: People who already have their homes and who are working right now will be needing retirement income in future and the best option for them is to buy a second home to put that on rental income which will secure their retirement span. So Demand for property as an investment option will always continue to boom.
You don’t need very advanced knowledge of economics and demographics to recognize the fact that every major social trend is pushing real estate prices upward either it’s infrastructure growth or any policies by government or need of home today.
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Author: NIKITA DAGAR
