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Why Do People Consider Real Estate as a Risk-Free Investment?

By: Crown Asia
Why Do People Consider Real Estate as a Risk Free Investment

Nowadays, many people become engrossed in figuring out how to increase their assets while not exerting too much effort on them. In fact, it is inevitable that several people seek investments where they believe that investing will not be a complete waste of money and that the advantages would be greater than what they had anticipated.

However, despite their best efforts to learn and comprehend the concepts of various types of investments, the majority of them remain skeptical and unsatisfied with the limited knowledge they have gained through their own means. Some people rely on YouTube videos, others on friends or relatives, while yet others pay for private classes. Indeed, there’s nothing wrong with starting early to learn how to manage and grow your money; the question is, which of these investments are safe or at the very least worth the risk?

While several people turn to the stock market or cryptocurrency, some people still prefer to invest in things that they could own immediately and make use of from the moment that it was turned over to their name. Commercial real estate is one of the best ways to make money due to its low risk and high return potential since it also provides a hedge against inflation as property values appreciate over time. Aside from having a permanent property like owning a condo in Las Piñas, one of the most essential components for horizontal property investors is income generation. Real estate investors can enhance their supplementary income by taking advantage of strategically located subdivisions — those adjacent to prominent and commercial locations, as well as turning owned properties into rental units.

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Not convincing enough? Then, in this article, a few of the reasons why many consider real estate a risk-free investment will be briefly discussed as well as an example of what real estate investment is worth the risk.

Here are reasons why real estate investing is considered a risk-free investment:

Among other investment alternatives, real estate investment is the safest bet.

Stocks present a potion of unpredictability when contrasted to entering the stock market, considering stock and derivatives trading has always been known as a risky game. Making money with equities and leverage trades is a highly specialized field that necessitates exceptional abilities. Real estate investing, on the other hand, does not demand any specific talents, and even a beginner can accomplish it. Not only is it safer, but it will almost certainly yield superior long-term returns — in addition to providing you with a stable roof over your head for future generations due to the nature of the real estate industry.

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The value grows over time.

When you spend money on a car or a gadget, the value usually starts to depreciate the moment you buy it. In the case of real estate and the real estate market, the situation is reversed. Real estate appreciates in value over time. In the Philippines, real estate assets have increased in value, particularly in urban regions with expanding populations. You may expect the value of your real estate investments in properties such as townhouses and even your condo in Las Piñas, to expand and grow in the coming years if you choose the right location.

Have full control of your own investment.

Another reason why many think residential real estate is a risk-free investment is the benefit of having complete control over something you can call your own. Real estate investing does not give you a piece of property with restrictions. When you buy a condo in Las Piñas, for instance, you are buying a physical asset over which you have entire authority. You can turn your investment properties into a passive source of revenue, or it can also be used for warehousing, which is really beneficial if you have other businesses. And of course, you are free to live in it and obtain a higher price if market prices go up.

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Portfolio Diversification.

In the long run, a diversified investment portfolio outperforms a non-diversified portfolio in terms of risk-adjusted returns, and it is likely the most important factor in achieving long-term financial goals while minimizing risk. The link between real estate and other main asset classes is minimal and in some circumstances negative, which indicates that adding real estate to a diversified asset portfolio can reduce portfolio volatility while increasing return per unit of risk.

Increasing your revenue through renting.

One of the most significant advantages of owning your own home is the virtually guaranteed rental income it may provide. Compared to stocks, once you buy a home, you are not subject to fluctuating market forces that can destroy your net worth overnight. Instead, owning a property ensures you a steady and predictable monthly income that will rise with the value of your home over time.

Furthermore, having rental properties like a condo in Las Piñas gives you the opportunity to return if you find yourself unable to continue in your current residence due to financial or other reasons. It is comforting to know that if you need to relocate temporarily for work or you suddenly feel homesick, you’ll still have a place to live when you return. However, you should verify your state and local housing rules, as well as the conditions of your lease with any current tenants.

Crown Asia’s Best and Exclusive Condo in Las Piñas

Many people have shifted to this sort of investment for these reasons, as well as the fact that real estate investing is one of the most prominent investments among investors. However, it is also abundantly obvious that finding a property where an investor would be willing to take a risk and put his money down is difficult.

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Crown Asia’s Hermosa is a 2.9-hectare sophisticated and exclusive resort-inspired condominium village emerging along with the C-5 Extension in Las Piñas City, about 15 minutes from NAIA and The Bay Area. It is near the forthcoming 100-hectare Vista Global South integrated and master-planned township development, which is one of the reasons why residential units are in high demand. The vast and lushly landscaped condominium village is complemented by resort-inspired amenities such as a function area, swimming pool, and nearby retail centers that provide a refreshing ambiance to modern city living. With this being said, homebuyers have the option to finally enjoy the aforementioned benefits, as well as to make their first real estate investment.

Read more: The Different Types of Real Estate Investment

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