Why Real Estate Investing (in this Economy) is still a Smart Investment

Real estate investing like any investment requires education on the markets and patience. Real estate for many investors is a tangible something they can feel and see. Investors consider it a hedge against inflation. Investing in real estate versus buying stocks as expected there are two schools of thought on the matter. Stocks can be liquid assets that can be sold in a matter of minutes whereas real estate can take weeks even months to sell. Stocks of course will decline in value or increase value as fast as they can be bought and sold.

Real estate depending on the location will not have such up and down swings, and is somewhat easier to predict where the market is. Investing in real estate in many cases can be conducted without the investor putting up cash trading in stocks almost exclusively requires cash. Rental property is an excellent example of a positive rate of return. Rent is paid every month to the investor; unlike stocks, the real estate is giving a return during a fixed period.


Commercial real estate investing is also a market with structured returns. Real estate can be leveraged for cash for other investments or refurbishing current real estate to increase its value. It is not as common that stocks due to the market swings are used as collateral, but it can be done. Real estate can be bought as an investment and resold in a very short time period for a profit. Real estate investing traditionally is longer term allowing the value to appreciate over time.

Income for real estate is based on whether it is rental property or property invested in to resell after fixing it up. Rental income for an investor is more stable, and there always seems to be a marker for rentals. Flipping homes as many call it can be problematic with cost overruns and the market conditions. Real estate investing in property that requires extensive remodeling to make a sale has many variables that can increase the investment amount. No one really knows the cost of remodeling until the investor is past the point of no return.