Is Real Estate Still Profitable? Here’s What to Know

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Real estate remains among the most popular forms of investment. Throughout the years, it’s something that has stood the test of time. But with things like cryptocurrency, micro-investments, easier ways to trade currencies and stocks, people doubt whether real estate is still a profitable investment scheme. We’ll be discussing the answer to that question and more.

The Answer Is Yes

People are always looking to find a roof over their heads, making the real estate industry a true tried and tested profitable investment. As long as humans need shelter, real estate will remain valuable. Because the global population is always increasing, there’s always the need for more real estate. The value of the real estate is barely going down, with minor fluctuations here and there, but all in all, it’s relatively stable. Here are a few more reasons why getting into real estate now is a good idea.

There’s a Decentralisation Going On

The pandemic that has forced many countries and cities on lockdown has shown its effects on the real estate industry. More people are looking to move out of the city and into rural areas to avoid crowds and congestion. And with the tight competition and high prices in metropolitan areas, it’s a good strategy to look outside of busy downtowns and find profit there. Fortunately, rural areas have considerably low price points, making it a great way for investors to profit.

Learn About Real Estate Investment Trusts (REIT)

You don’t even have to deal with real estate directly, should your intentions be only for investments. Real estate investment trusts or REITs are another way to invest in the industry without getting your hands dirty. REITs provide a high dividend on top of the potential for high and long-term appreciation. And with real estate showing relatively fast recovery despite the pandemic, it’s a guarantee that REIT will increase in value as well.

 

It’s a Lot Easier to Buy Land

Before, purchasing a property involved contacting a professional real estate agent or physically going through a newspaper and looking at the classified ads for real estate listings. This isn’t the case anymore and is among the reasons real estate remains profitable.

It’s far easier to purchase real estate now because multiple systems make the process easier. You have systems like online listing, services like Modeina, apps, and software that allow you to look for a property with specific details- purchasing property is far more accessible nowadays.

Real Estate is Always Appreciating

Of course, this depends on certain factors like location, development, and improvement of the property. By and large, real estate has appreciated considerably throughout the years. There’s an average appreciation rate of around 15%, and it’s constantly increasing in numbers as the years go by.

Another thing to consider is that formerly non-prime locations are receiving a sudden surge of attention due to decentralisation. The dismal prices of some locations years ago are now increasing on an astronomical scale, making them great investments.

Fixer-uppers and Fix and Flip

As mentioned in the last point, with people moving out of areas they’ve lived in for years, there’s a lot of buying and selling going on. Many use this opportunity to buy depreciated property, liven it up through renovations and sell it at a markup.

Of course, a total renovation isn’t all that cheap, however through the right real estate avenues, an investor can still get a good ROI even with fixer-uppers. Many companies and individuals have begun specialising in these investments, proving that something worthwhile can be made out of old houses.

The Millennials Are Buying Real Estate

How can we forget the impact of the newest spending generation? While those born in the mid-80s to mid-90s took quite some time to bring their buying power to that which can afford real estate, they’re finally there. And they’re ready to spend.

More and more millennials are moving out of apartments and have begun investing in their own properties. They’ve become the fastest-growing market segment in the real estate industry. If one were to join the real estate industry, they’d find that most of the buyers (and real estate agents) are within the millennial age group, once again proving that real estate is still very alive.

The real estate industry is far from depreciating. As a matter of fact, it’s only bound to go up with how things look now. More than ever, now is the best time to get into it both for investments or business purposes. Consider what you can do in real estate, and you might see something profitable.

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