Real estate is certainly one of the oldest forms of investment known to mankind. It may have begun as early as our decision to stop being nomadic and settle down.
For centuries, rulers have annexed territories to expand their kingdoms and establish superiority and dominance. It had a different payout in those times but it was a good investment nevertheless.
If you think about it, it was the greed to have more real estate that brought Napoleon to Waterloo and Hitler to Russia. Territory has always been sought after irrespective of the time and age that we live in.
In the modern times, making an investment in real estate is considered to be wise for a host of reasons. There are many investments with higher returns out there in the market but none that can be as safe and promising as real estate investment.
The relative stability and the potential returns make it a lucrative investment for the elderly. Following are some other reasons that make real estate a highly lucrative investment for those looking to secure their retirement:
Real estate is not just an investment that you can benefit from but it is also an investment that provides the much needed security for your future generations.
As we have studied in our school textbooks, shelter is one of the basic needs of mankind. So your children, grandchildren and also their children will be quite grateful to you for putting a roof over their head.
Sure there are other forms of investment that can be given away as a part of your legacy, like shares. But how many companies are able to keep the value of their shares steady for several decades to come.
Real estate on the other hand is bound to grow and even if it doesn’t grow you can always count on it to be more stable than the market, as shelter is a need which never really goes out of demand.
It doesn’t take an Einstein to understand that the share market is far more volatile than the real estate market. Liquidating a property asset takes a lot more time than other forms of investment. But it works in the favour of real estate investors as there is no possibility of a large number of people withdrawing from this investment at the same time thereby bringing about a market crash.
Another factor that works in its favour is that it takes many efforts to purchase and transfer a property and as a result it is considered as a long term investment. The kind of investors who are looking for short term gains are unlikely to get involved in this market.
According to investment experts, a property investment is highly beneficial for those who have retired as this investment is not likely to crash overnight or even over an extended period of time.
A property which is located in a prime location will always have a steady demand and supply and it is likely to hold its value. In the case of such properties one can easily sit back and relax that there will not be a major fall all of a sudden.
It keeps on growing
Investors who are looking to have a golden egg in their retirement nest often adopt the strategy of investing in real estate as it is sure to grow their capital over time. If they have been able to buy multiple properties they also have the option to sell some of their properties and build a bigger bank balance or sell few properties and utilise the rental income for their expenses. The appreciation of real estate rarely ceases and thereby increases your net worth with every passing year.
The value of shares depends on the market conditions and also the owners of the company whose shares you may have purchased. Owing to these factors there is always an element of uncertainty involved and it leaves the investor with little control over the value of shares.
The same cannot be said about real estate investments as owners can increase the sale value of their asset by renovating and in the process also increase its rental value.In these aspects real estate is significantly better than the other forms of investment. As a precautionary measure you should also learn more about how to make a Will to ensure greater financial security.