Investing in real estate has become one of the most popular ways to gain huge profits and build wealth. It is true that it is the type of business that also comes with several risks that you are rarely in control of. However, the real estate industry is on the rise no matter if someone believes the opposite. Here are 3 great reasons why investing in real estate is still worth it in the years to come.
Take a look at your surroundings and notice how many construction areas you see, especially in the suburbs of your city. Most probably, you can see several buildings under construction and that is the best example you can have to understand that the real estate industry continues to grow.
The overall world’s population is experiencing growth for many years now for several reasons such as the development of the medical system which has increased life expectancy rates worldwide. Also, urbanization is another trend that has escalated in our today’s world. In fact, recent data show that it is projected that more than 68% of the world population will be living in urban areas by the year 2050.
Considering those two real changes that are happening in our world, as the world population is growing and more and more people want to move in the urban areas, there is no better time to invest in real estate than nowadays.
Although it has been noticed that individuals from the Millennial generation tend to skip the starter home and rent homes for a longer period of time, this won’t necessarily affect you as a real estate investor. In fact, if you are wise enough to use this trend in your favor, you can gain huge profits from real estate. All you have to do is to invest in rental properties that will attract the growing younger generation.
Compared with previous generations, Millennials have a completely different perception of homeownership. The young generation focuses more on professional growth and needs flexibility in case their jobs will require them to relocate for a spectacular opportunity. Thus, they prefer to rent properties instead of buying houses until they decide to settle down and start a family, which often tends to happen close to or after their 30’s.
One of the biggest advantages of investing in real estate compared with other industries is the fact that tax breaks and depreciation can work in your favor. Many governments from all around the world reward property owners with tax breaks which can help you retain more income from your real estate investments. Also, appreciation can work well for your real estate investments as the value of your properties usually increases over time.
Investing in real estate is certainly still worth it in the next years to come. However, the difference between success and failure in this industry stands in making smart investments with the market trends and the future in your mind.