Anyone that has spent a little time watching the news or picking up a magazine will have felt the pressure of having to invest. This is especially true any time the market is going up and many out there are feeling the burn from FOMO (Fear of Missing Out).
But the real question remains: Where do you go to invest and what on earth should I invest in? This is an extremely valid question that any new investor should be asking. The truth is that there are many options where you can place your money and see it grow.
While examining all possibilities could lead to a very long article, we will opt instead to focus on real estate investment.
Dispel the Rumors
First things first, let’s dispel a few rumors. Real estate investing makes many people think that they need millions of dollars to spend. False! While it is true that having trucks full of cash would help invest in some serious real estate ventures, the average Joe can still invest in real estate and make a great return.
Another myth: The real estate market is extremely volatile. First, any investment has the possibility of being unstable. If you want a low-risk investment, you might want to opt for bonds. However, they will likely bring in very meager returns.
Second, despite the downturn of the Great Recession, home values have historically gone up with time. Therefore, even if there were a turn in the economy, prices would likely go up again after the market corrected itself.
Where to Invest
Now, where and how should you invest your cash? The most traditional way is by owning your own home. Homeownership is a great way to take some of your hard-earned money and spend it in a place where you can live.
A word of caution: Choose your home carefully. If the expenses a home incurs are more significant than the increase in the home’s value, then you might find yourself at the losing end of the stick. That being said, if you buy a nice house in decent shape, then your spending of fixes and maintenance should be rather minimal.
The next option would be to flip houses. Admittedly, this might be the riskiest of options and could lead to a more significant loss than you intended. If the market slows, then you might end up with an additional mortgage or the prospect of being a landlord.
Also, any time you fix a home, you can run into unexpected expenses. However, if all goes well, you could be in for a serious payday. One tip, choose a hot market like houses in Austin to improve your chances of success.
One final option is to invest with others. Startups like Fundrise offer investors the chance to get together and invest as a group in real estate. This is a great option that does not require you to put forth a considerable chunk of cash.
As you can see, real estate investment can quickly become a reality.