When people talk about investments, the first things that usually come to their mind would be stocks, bonds, and mutual funds. But have you ever thought about investing in real estate?
Most investors tend to shy away from real estate, as it appears to be complicated and potentially requires a considerable capital outlay. You may not need as much as you thought to get started investing in this asset class, as there are various ways you can do so.
And here are five reasons why we think you should invest in real estate:
Real estate helps to diversify your investment portfolio.
Most people would resonate with the golden rule of investing, which is to not put all your eggs in one basket. What this means is really that investors should diversify their investment portfolio. Since real estate is usually lowly correlated with risky assets, we believe it makes an excellent addition to your investment portfolio to help mitigate its overall risks.
Leveraging is possible
Real estate investments can be leveraged, which means you can invest in a property even if you cannot pay the total amount upfront. This is made possible because real estate is a tangible asset, like a physical piece of land or property that can be sold off, unlike stocks or bonds, which are closely linked to the stock market.
Attractive returns with risk adjustment
Though various factors affect the price of real estate, you can be sure of its ability to provide competitive returns. The capital value of real estate essentially appreciates over time and provides an avenue for rental income. Such forms of cash flow are attractive compared to other asset classes, which may offer dividends and capital gains on the basis that the underlying security does well.
Flexibility and diversity of asset class
Stocks and bonds largely depend on the stock market's fluctuations; it is almost impossible to influence or predict their rise and fall. On the other hand, real estate presents you with more opportunities. It is possible to drive the value of real estate upwards with some simple renovation or improvement projects, enabling you to have a greater return on your investment faster than natural appreciation.
Furthermore, real estate is a versatile asset class since it encompasses residential properties, commercial spaces, shopping centres, hotels and office buildings. This leaves you with many choices regarding which sector you want to invest in.
There is something for everyone.
If you’re not entirely confident about owning and managing properties just yet, you can look to invest in a real estate investment trust (REIT). These publicly-listed companies own and operate income-producing real estate spanning different sectors. REITs are bought and traded the same way as those listed on the stock exchange. For individual investors, this is an affordable alternative to a direct investment in a capital-heavy asset, allowing you to have a small share of the property’s income distribution.
Another option to consider would be a real estate investment platform. For those that want a more intelligent way of doing real estate investing, RealVantage is the answer. Launched in 2020, this co-investing platform aims to bring a high-performing real estate investment portfolio to the average investor. Before this, real estate investment was primarily closed off and only accessible to high-net-worth individuals. With RealVantage, anyone can reap the extensive benefits of real estate investment.
How does RealVantage work?
The team behind Real Vantage understands the significant risk of investing one’s savings into a single property, especially when one is not equipped with insider knowledge and appropriate expertise. To tackle these problems, RealVantage allows for:
Fractional ownership
Instead of pumping your money into full real estate investment ownership, RealVantage opens up the possibility of owning several properties across sectors and geographical regions using the same capital investment.
Professional management of assets
With experienced advisors and investment professionals on the RealVantage team, you can focus on selecting the real estate opportunities that fit your investment criteria. k A knowledgeable team of specialists conduct due diligence on the real estate opportunities, considering compliance with foreign real estate policies and tax filings, which makes your foray into real estate investing much less intimidating.
Institutional-quality deals
Each investment option is rigorously evaluated by a committee of industry professionals. Only a select few deals make it to the platform, which ensures a high level of accountability and credibility. Moreover, they fully disclose all analyses and assessments of values, so you have the details and data on where your money is being put to work.
Getting started is simple – all you need to do is create an account, search for suitable investment opportunities, deposit money and invest in your desired real estate property. Then, enjoy complete visibility of your investments and their performance at any time on RealVantage.
Boasting a track record of 17 deals funded and 7.2% of the annualised income distribution, RealVantage is the way forward to building your global real estate portfolio. Join their investment community today to unlock a world of possibilities in the real estate market.
