Why invest in real estate?

Real Estate – The cornerstone of wealth 

Real Estate is the cornerstone of wealth, and all real estate’s estimated value was over $325 trillion in 2020. No wonder everyone is clamoring to get their slice of the pie. 

Real Estate has long been one of the most popular places for wealthy businesses and individuals to allocate a portion of their capital. The fact remains that Real Estate is the number one creator of millionaires in the US, and some studies have shown that homeowner wealth is 46 X that of renters. 

Particularly these last few years, Real Estate, has become even more sought after, with the low interest rates we have seen and extra government assistance to people struggling through COVID. The Real Estate market has seen a significant surge in house prices, and although we have seen a slight cool-off, real estate prices remain near all-time highs across much of the US and Canada. 

Why real estate? 

The question then is, why is Real Estate so popular, and why does it form such a significant portion of the net worth of many individuals and businesses? Well, there are a few obvious reasons, such as everyone needs a space to live and work in, and many people prefer to invest in something they can physically see, touch, and modify as opposed to paper assets like stocks and bonds. 

There are, however, a few other distinguishing characteristics of Real Estate to the homebuyer, which you may not find in some other, more traditional asset classes. We will explore some of these characteristics below. 

1. Capital growth 

Sure, you could put your money into the stock market and receive capital growth, but how many people decide to put away a portion of money into the stock market or another investment but do not follow through with their intentions? With real estate, you have a mortgage payment that you must pay down. So, this is like having a forced saving account that you contribute towards every month. As you pay off your mortgage or “save” money into this vehicle, the value of your mortgage gets lower and lower. You then build up more equity, which is essentially money tied up into the property, so if you decided to sell, you would be able to access that portion of the capital. Not only are you paying your mortgage down every month, but the property’s value should go up over time, and you can potentially sell the property for more than you bought it in the future. 

2. Leverage 

Leverage allows you to place only a portion of cash down and purchase a more expensive property. The concept is that you use other people’s money to buy a property, and you need only a percentage of the capital of the actual property to buy it. You can then pay the property off at your convenience or choose to sell when you feel the time is right. Real Estate is one of the best and easiest ways to leverage money and get exposure to a more expensive asset than you may otherwise have been able to afford.

3. Hedge against inflation 

Inflation has come surging to the forefront in the last few months as the world feels the effect of COVID and the central bank’s financial policies. Inflation is a genuine concern for most people, and people are looking for ways to stay ahead of inflation or reserve their purchasing power. If you take out a fixed-rate mortgage, your monthly payment is based on the dollar's value at the time of purchase. As the dollar’s value decreases due to inflation, you pay off the property with cheaper dollars. 

Additionally, the property is increasing in value over time, which usually outpaces inflation. Hence, you are staying ahead of inflation regarding your property’s value and the equity you can access from the property. 

4. Cash flow 

Real Estate can be used as a primary residence for a family to stay in, or the property can be rented out to a tenant. The tenant pays rent to the property owner, which should at least cover the mortgage and expenses, and may often cover the mortgage and expenses. If this is the case, the property puts extra money in your pocket and is said to be cash-flow positive. 

Although a property carries expenses, a good property deal should provide positive cash flow from the onsite, where the rental income not only covers but exceeds the costs of owning the property. 

Partner with Snaphouss to sell your property 

Whether you buy real estate to live in, rent out, or as a fix and flip investment, whenever you decide to sell, SnapHouss can help you elevate your listing to new heights and command the highest price possible. We are seeing more and more listings coming onto the market as real estate prices are starting to correct after the hysteria of the last few years. There is more competition amongst sellers vying for the best price possible. 

It is estimated that up to 90% of home buyers include online search when searching for a property to buy. However, this is more important to ensure that your property's online presentation and marketing are exceptional. You cannot present sub-standard or poor-quality photos and videos and expect to get an above-average selling price. You must present your property to prospective home buyers in the most appealing way possible. 

With our range of specialized product packages and services, we will make your property stand out from the crowd. 

Our packages start from $99, and we complete all our projects within 12 hours. 

Our range of services includes the following: 

- Real Estate Photography 

- Cinematic videos 

- 3D Virtual tours 

- 2D Floorplan with dimensions 

- Virtual feature sheet 

- Twilight photo shots 

- Virtual staging 

- Realtor intro/outro videos 

- Professional voice-over for video 

- Full realtor narration video 

- Tiktok-style videos 

We currently service major cities across Canada and the US and would love to assist you. 

Please feel free to reach out to us!