Spend some time on any popular personal finance website or blog and you’ll run smack-dab into the recommendation for real estate investment. More and more, with the job market lagging and personal job security suffering, folks are turning to alternative income sources and investing in property. Real estate investment is a growing trend amongst the financial independence crowd with good reason.
Despite growing knowledge that living pay check to pay check is unsustainable, over one third of the national workforce continues to do so. Factor in inflation and the rising cost of living and it’s no wonder existing pay checks are struggling to keep up.
The sad fact is that job growth has failed to match the number of the newly employable out there looking for work. With a volatile job market failing to deliver financial security for many employees, alternative income streams offer a means of control in an uncertain world.
Reals Estate Investing Offers Growth
Generally, when discussing passive income streams, the focus isn’t about the simple interest from a savings account. What’s needed are higher yielding, better performing investments that can keep up with or outstrip inflation and this is where real estate investment comes in.
Industry predictions for 2015 indicate that flipping homes for a quick profit will not be as easy as before. On the other hand, real estate investment that involves purchasing housing to hold for the long-term will be a better bet.
Why Rental Property
If you are interested in residential properties and looking at long-term, real estate investment, the obvious route would be a rental house. After taxes and property maintenance, the actual property value itself will not depreciate. If the house is in a desirable neighborhood, attractive to a pre-existing stream of newly arrived, high-income workers, the value could outpace inflation.
With a shortage of construction workers, opportunities in finance and lending and the allied services such as insurance and home improvement, the real estate industry is a serious job creation dynamo. But a job is only a job, whereas real estate investment allows people to meaningfully raise their total earnings.
Owning rental property is another way of trading your time for money. You can choose passive real estate investment; not everyone is cut out to be a landlord. But if you have a passion for your city, know all the good neighborhoods, love searching out good housing deals and have modest DIY skills you’re already a landlord in training. The only other requirement is enjoying the personal communication with the tenants you attract by marketing your new acquisition with gusto.
So Which Would You Choose?
Long-term real estate investment in rental properties doesn’t always have to be hands-on. Many successful investors have grown an empire with passive income property investment or turnkey investment properties. Busy professionals with financial resources, and no time to spare, can be a great match for this type of real estate investment. If you have plenty of capital but want to generate regular, monthly income, there’re plenty of options, find the best fit for your goals, state of affairs and requirements.