What is so hot about Real Estate investing? Why do people speak about Real Estate often? According to Forbes, Real Estate is shown to be the #3 way most Billionaires acquired their wealth. It has been a constantly proven way to collect equity. Below are the some of the reasons why:
1) Securitized Investment
When a lender is loaning you on your real estate purchase, there is a good collateral that comes with that purchase. The land the property sits under tends to hold good transferable value. This is different than a auto loan or a business loan. This is a securitized purchase and therefore a pretty good decision on performing and non-performing loans.
2) Usual Value Growth
Property in Real Estate tends to grow in value, because of the usual expansion of a location. When an area begins to settle, it brings a new population and their needs. This means more attractions, shopping centers, etc. This creates growth which gives a better value to the location.
3) Easily Transferable
Everyone needs a place to rest their head at night. This is a common need among society along with the basic needs. Not everyone needs a luxury vehicle or diamond necklace. Because real estate property is widely needed, then it becomes easily transferable. This does not mean it is a liquid wealth, but the process of selling the property is common.
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