Real estate has always been considered one of the safest avenues of income and financial stability, and if you have enough saved away for a large upfront payment, this is likely something you’re considering. You may not, however, be ready for what owning a property comes with buying real estate. Have you instead considered real estate investment? Check out why we think real estate investment is a better deal than buying right now.
Own property without being a landlord
Having a large deposit upfront isn’t enough when it comes to buying property, as you also have the responsibility of being a landlord. Being a landlord is a big responsibility, and while many people are willing to sign up for this as a second job, others aren’t, and the tasks can be constant and endless. This involves anything from hiring an agency, vetting potential tenants, collecting rent, keeping in touch with tenants, and being available for household repairs. Real estate investment comes with all of the benefits of owning property without any of the nitty gritty details like being on hand for maintenance and repairs or having to enlist the help of a property manager. Own your property in a hands-off approach that allows you to sit in the back seat and enjoy the ride.
Passive income
Of course, the primary attraction of real estate is the ability to earn a passive income. This is one of the perks of buying property outright although some may argue it’s not as passive as it may seem. After an initial cash injection, earn money by investing in an asset that won’t depreciate in value or cost you in time and resources.
Choose how much to invest
Unlike with buying property, where your down payment and monthly mortgage payments are set at a certain rate, real estate investment can vary depending on what you are looking for. The investment works in a similar way to stocks, so you can choose to put in as much or as little money as you want. A real estate investment group, for example, may own a large selection of properties and you can decide which one is going to be the best investment for you after careful consideration.
Overseas real estate investment potential
When it comes to buying a property, you will likely feel limited to local or at least in-country purchases, where you are able to access them regularly in a place you are familiar with. There is no such limit for real estate investment, however, and investing overseas can actually prove more lucrative than within your country.
While you’ll need to dedicate time and effort to visiting the property and location, as well as learning about the local culture and tourism stats, your options become endless once you consider the potential from overseas properties that can offer more variation in incredible locations than, say, just the US.
Less risk than stocks
Real estate investment is similar to investing in stocks in that you are buying a part of a company and essentially owning a percentage of it. While stocks are better for short-term gain, require less money upfront, and can be liquidated more easily, the stock market itself can be very volatile, and vulnerable to factors such as the economy, inflation, and market trends.
It can require much more research and due diligence before you invest in real estate, but this covers the largest risk in the investment, leaving you with a slower but steadier payoff in an asset that is useful and long term.
Luxury rentals are booming
There are many ways in which to invest in real estate without buying right now, and with luxury travel on the uptick, why not check out luxury rentals as an investment? When you invest in real estate, your chosen property should have a theme or brand that you are interested in. Luxury rentals open up the possibilities to incredible locations that are not only prime but very in right now. Even huge travel accommodation players Airbnb and VRBO have turned their hand to the travel trend of luxury rentals, catering for a new generation of travelers.
Be part of a group
Buying or investing on your own can be a daunting undertaking, which is why investing with a real estate group or company can give you the cushion you need to feel comfortable and confident in your investment. As team players, you will be in this together, so everybody is playing their part in making the right moves.
Make sure you undertake your due diligence – key for real estate investment above all else – and choose a company that knows the market, the area, and the customer base for a stable, low-risk, and steady financial payoff. If you’re looking to invest in an overseas property with incredible views, an unbeatable location, and increasing tourism stats, get in touch with Amber Kampot to discuss our vision and your potential.
