Since the beginning of time, real estate has been a great investment strategy for people to get wealthy and look after their future. Under the right circumstances, real estate offers an alternative of lower risk with higher returns, it’s a self-sustaining asset becoming the best way of earning a passive income and build an investment portfolio, saving for retirement or sending your child to university. Some people see their home as an investment that will create value over time. Other people may invest in real estate by purchasing property to lease to another person or business with a plan to earn income through the rent. This is known as investing in ‘real property’.
However, when you became an investor, there are responsibilities such as, handling paperwork, finding and dealing with a tenant, making repairs, as well as covering all the costs that come with owning and maintaining the property, including any mortgages, taxes and utilities.
