How does investing in real estate compared to other kinds of investments?
There are several ways to invest your money. You can get a U.S. Government bond (the safest investment); however, don’t look forward to getting rich from that investment. The same goes for insured savings accounts from banks and Savings and Loans. You may also investigate stocks, bonds, gold, silver, mutual funds, and commodities. These are much riskier investments that are better to be left up to those that understand and study those markets.
Why invest in real estate, you ask? Real estate has a unique niche in the investment market. Unlike the stock market, real estate rarely fluctuates with such intensity. Real estate, in general, appreciates market value.
According to the Radian Home Price Index (HPI), the average home appreciated 8% during the 12 months of 2020. With some areas doing considerably better. As a long-term investment, however, you will find that real estate can bring a much higher return on your investment dollar than you would receive if it were tied up in savings accounts or bonds,
While real estate is not considered a “liquid” asset or an investment that can be dissolved within days, it can often be more “liquid” than imagined. For example, if the home is well-located and valued property, then it can be sold in a relatively short amount of time. Also, a homeowner might consider a second (tax-free) mortgage when looking to liquidate.