Be it your personal or professional life, you tend to do our homework before believing anything.
Investment in real estate is no different. Real estate investing is a significant step towards financial stability, but even after thorough research, one may still be daunted by the myths surrounding it.
Due to the numerous conflicting pieces of advice surrounding real estate investing, this could be a particularly important yet perplexing moment for prospective investors. While some may seem harmless, most of them are capable of blinding you into making the wrong decision.
Here are five significant myths we debunked to ease your real estate investment journey:
# Myth 1. Real Estate Investment is extremely RISKY
Real estate investment is often tagged as a ‘risky’ venture. There is no such thing as a 100% risk-free investment. There is a certain amount of risk inherent with any investment. However, calling it ‘extremely risky or the riskiest’ is more of a myth.
Real estate, when compared to stocks, mutual funds, and bonds, is considered to be perilous. The stock market is volatile, with many ups and downs, while the real estate market has remained hot. Why? Real estate investments have the potential to deliver strong returns. Risk is your biggest ally. Real estate investing is one of the lowest-risk investments that has created the most billionaires globally. Like Mellody Hobson, the chairwoman of Starbucks, said, “The biggest risk of all is not taking one.”
#Myth 2. TIMING is everything
You are hardly alone if you believe this myth is a fact, especially if you are a firsttime investor. In reality, there is no perfect timing to invest in real estate, unlike how those outside the investor universe believe there is.
While deciding when to invest is crucial, waiting for the perfect time emanates from the perception that real estate value will tremendously fall in the imminent future. However, the real estate value is never going to hit zero! Although perfect timing could mean dodging the wrong time for investments, the focal point needs to be financial stability and real estate familiarity that comes with thoroughgoing groundwork. Proper market research will help you perceive market predictions and help you make an informed investment decision rather than waiting for an opportunity to knock at your door at the ‘right time.
#Myth 3. Investing is only for ‘ADULTS’
Real estate investment is one of the best ways to become financially secure. People of all ages have never had these many opportunities to invest in real estate in the history of humankind, and these cannot be restricted to just‘adults.’
Tech-savvy millennials are in their prime buying years. Though they are at the crossroads of making crucial decisions, young adults have one thing going for them: Time. Twenty-somethings with consistent hikes in disposable income can tolerate more risks and are currently the primary drivers of real estate investments. While Covid-19 enlightened us about various things, it has unquestionably encouraged millennials to turn to real estate in unprecedented numbers. Strict implementation of policies like RERA has made real estate investments safe and secure for everybody, regardless of age.
#Myth 4. Investing close to HOME is the best
Investing in real estate can be like launching straight into the unknown. However, this does not mean one has to invest close to home. Especially with the world becoming a global village, confining to comfort zones will not set your investment trajectory right.
Aiming to invest close to home would sometimes mean forfeiting other opportunities. Real estate value in developed nations like the United States is solid. Investing in US real estate can give you an upper hand. However, choosing your real estate company wisely is essential, as a rookie mistake here can pull the plug on your investment returns.
#Myth 5. Real Estate Investment is only for the RICH
This has to be the biggest myth around. It is a common misconception that a deep pocket is a prerequisite for investing in real estate.
However, the phrase ‘it takes money to make money has ceased to exist in today’s modern world. It has never been easier for anyone to invest in real estate. Many assume that a hunk of change needs to be invested for stellar returns. While it is true that one needs capital to start investing, real estate investment companies do not require a very high minimum amount. This means you can start small.
At Ashton Gray Development, a vertically integrated real estate investment and development company, investments start from as little as 10 Lakhs with 18% annualized returns. With its proven 100% return on capital track record, Ashton Gray is a private equity real estate leader.
Real estate investment can be stress-free yet surround your big-picture goals. Contact us to get started.