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To Invest or Not to Invest in Real Estate

July 23, 2015

To Invest or Not to Invest in Real EstateInvesting in anything can be a terrifying ordeal if you aren’t prepared for the ups and downs that come along with making a sizable investment, however, if done properly, investing in real estate can not only be highly lucrative, but it can also be great for your peace of mind. MIA Waterfront, a leader in the sales of Miami Beach waterfront homes in exclusive communities like Venetian Island Real Estate, presents you with three reasons why investing in the real estate market is a good idea.

The Potential in Appreciation – Appreciation in real estate is defined as the increase of value that a property experiences.  There are two different ways a property can appreciate in value.  The first way is from inflation,, however, since this is out of your control, this is not a benefit.  The other type of appreciation, that you can control and therefore making it a great benefit, is a form of market appreciation.  This type of appreciation occurs when you renovate a property, thus improving it and driving the value higher, thus making it easier to sell and to gain an actual profit.

Long Term Wealth – When you are investing in real estate for the sole purpose of making money, the best way to achieve long term wealth is by becoming a landlord.  While this may seem like quite a stressful and not very lucrative opportunity, it can actually become the opposite as long as you do your due diligence, meaning ensuring the property is at its highest standard aesthetics wise and ensuring you properly screen any candidates that may want to rent your property.

You can diversify or even begin to create a portfolio – Since real estate has a low correlation with other major asset classes, an addition to your portfolio could quite possibly provide a higher return per unit of the risk that is associated with bonds.

What are your ideas regarding investing in real estate?  Share them below in the comments section.  Or to learn more about how to sell or lease with Julian Johnston and his team contact him at 305-502-3985 or julian@MIAwaterfront.com.

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