With market uncertainty, real estate is the best investment
Real estate is a more secure investment than stocks, bitcoin, or other financial trends. Whenever the market takes a turn for the worse, investors begin to realize their investment portfolios are not nearly as robust as they might think. Spencer Chambers’ opinion is it’s because the investments are intangible and subject to the whims of the market, and people tend to put too much trust in them.
One trendy example is bitcoin. Even though plans are in motion to make it more stable, it’s currently not backed by anyone or anything concrete. This intangible investment is another prime example of an investment subject to wild swings in value. Chambers says that’s why real estate is more stable. There is a solid representation of the money and time invested. Any market swings are highly unlikely to be day to day like stocks or bitcoin can be.
In real estate, an investor owns a physical property. This property doesn’t die and will always be there. No matter what the market looks like, a real estate investor will always have a bargaining chip in the form of a tangible investment. Chambers adds that real estate only gets more valuable as the population keeps growing.
To expound on his point, Chambers reminds those interested in real estate investing of the law of supply and demand. The supply of land does not change but the demand continues to rise as more people need homes, businesses, and other forms of real estate.
When looking for stability in investments, real estate is tough to beat. It continues to appreciate in value and that appreciation can take two forms: either an investor buys low and sells high, or he rents out a property. If he rents out a property, the investment yields double, as the property both creates cash flow and still appreciates in value.
Author: Spencer Chambers