For John Eilermann St Louis and its real estate market have been where he has made his fame and his money, a career which has been nicely capped with his naming to the real estate industry council of the Federal Reserve Bank of St. Louis. In a recent speech John spoke fervently about why more people should be looking to get involved in real estate investment and it is certainly something which is a hot topic right now, given that we don’t know what is going to happen in the real estate market in the coming months.
There are clear reasons however why so many people are looking at getting involved in this industry, and this is why people love it
Contrary to investing in stocks, which are essentially just numbers on a screen, a real estate property is real and physical and it can only really be destroyed by fire or a wrecking ball. Ultimately people love to have the level of security which a property brings and that is much of the reason why they would prefer to invest in real estate rather than stocks and shares.
Chances to Make Money
There are many ways in which you can make money through real estate investment, it is not just about buying and selling. What many do is to rent out the property and then allow that rent to pay for the value of the property, at the end of this they will then have an asset which is 100% profit. Some others like to quickly buy and sell property in a process called flipping, which sees them buy at low cost, invest money in getting the properties up to their full potential and then cashing in for a small profit, they will aim to do this with multiple properties.
Supply and Demand
What is brilliant for many real estate investors is that demand has always and will always outstrip the supply of properties. This means that owners very rarely have issues with regards to selling or getting renters into their properties. There is pressure on governments all over the world to supply more properties and affordable housing for the citizens and as long as this isn’t happening and populations are rising, property owners will have a market which is hungry for properties.
When compared to other areas of investment such as stocks and shares or futures, the real estate market is far more tranquil and does not display the level of volatility of other investments. This again is what brings more people into the real estate investment world, because they can be safe in the knowledge that the value of their property is not going to plummet overnight. There are of course always extreme situations which may cause something like this to happen, but it carries the same level of risk as any investment would.
This is exactly why so many are keen to invest in real estate with their savings.