Why We Love Real Estate
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
This quote by Andrew Carnegie illustrates the impact of real estate investing. Stability, tangibility, appreciation, accessibility, and inflation are all vital themes to consider when placing trust into an investment. These same reasons are why we, at James Masterbuilt Homes, love real estate.
Even during volatile times, when the stock market looks like a hospital patient with a bad case of arrhythmia, property and housing development remain constants in a wavering market environment. This is because a home is a normal good. This means a home is not a want or a luxury, it is a necessity and everyone and their family needs a home.
Unlike the stock market and other various methods of investing, real estate provides the investor with two highly valued, tangible assets. In this method of investment the investor owns both the land and the home. Thus, the worst-case scenario leaves the homeowner with a home to live in or sell.
Asset vs. Liability
As a homeowner, you have the power to choose how you want to use your investment. A liability means you alone are responsible for the upkeep, security, and use of your investment. Should you choose to rent your home, it then becomes an asset, which in turn provides you with a steady source of passive income.
As an owner, you hold the keys and you hold the deeds. Sell when you want to sell, rent if you want to rent, hell… knock the whole thing down and start from scratch. Can’t say the same for stock in Apple.
Wouldn’t it be sweet if you could sell your car for more money than you bought it? Well this is the idea behind home appreciation. After you buy your home, the property you initially purchased gains value overtime as developments around you increases the value of your community. Therefore, once you are ready to sell you can turn a profit for your patience. Any additional home improvements only further the increase in your home’s equity.
Inflation differs from appreciation in that inflation drives the prices for common goods and services up while the spending power of currency decreases. This does not mean the value of your home increases, only that the distance of your spending power decreases.
With these crucial variables to keep in mind, it is critical to evaluate your financial capabilities and respond appropriately accordingly to your investment goals. We at James Masterbuilt Homes fully believe real estate is the smart option when expanding your financial portfolio.
Browse through our collection of home models, speak with a representative about our investment offers, and capitalize on your future before it comes.