Real Estate is The Most Valuable & Safe Investment
We all live in our homes or in someone else’s home without truly understanding the monetary importance of the space we occupy. If we live in a strategically important area then the value of the residence or the land continues to rise every single second! Time is on the side of real estate. This also implies that time is on your side if you are a real estate owner or investor. Don’t we all know that property brought in the lakhs or even thousands a few decades ago can now command hundreds of crores in value today?! What is the secret behind this rapid and mind boggling increase in value? Location in one word! If the property is in a prime area, it will regularly attract new investors which in turn leads us to a crucial law in the real estate money making:
Prime properties are the key to prime profits.
Also remember that apart from paying handsome dividends, prime properties also increase in value each year. And why is it that prime properties increase and grow steadily in value year on year? Well that is because about 80 % of India’s population sits on about 5 % of the area of India. What this implies is that the 5 % land mass becomes more valuable as the population of India increases and larger and larger numbers of people try to squeeze into the limited area of a city or town! What is more, the amount of land available for real estate use does not increase but rather keeps decreasing. And in a situation where you have more people – house owners, apartment owners or factory owners – wanting a piece of a decreasing commodity, the price has to go up! It is for this reason that land and the stuff that is built upon for residential or commercial use is one of the best investments you can ever make.
Do remember that in today’s world, the best investment made by an average citizen from the angle of profit is in real estate – there is no doubt about it. The profits earned from real estate is far more than the profits made by the same person in the stock market, antiques, art and similar investments.
Your chances of making big money in real estate are much greater than in any other area of investment. If you are a beginner wealth builder with considerable amount of salary or cash to spare, do remember one thing that you do not have always park your own money in your real estate purchases.
In fact, Real estate of all types whether residential or commercial is almost always financed with other people’s money (OPM). In fact, you are expected to borrow to buy real estate. Paying the entire amount by cash in India is of course the rare exception. Let us summarise the importance of shelter once again for human beings who unlike the other animals who inhabit this earth are far weaker in terms of body composition and make up and will perish if left to the mercies of nature and the elements.
- Warmth in Winter
- Coolness in Summer
- Dryness in Fog & Rain
- Protection from Wind & Snow
- Pleasantness to improve our lives
- Safekeeping for our belongings