For a long time, real estate was looked at as a high-end, heavy, and unattractive investment. The thought of investing significant sums of money in a residential property or a commercial estate was perceived as a high risk and low return capital spending vehicle.
At 33 Holdings, we would like to shed some light on the reality and try to clear some of the misconceptions of real estate investments and hedge funds.
Real estate can be an amazing return on investment, if it is done with accurate insights, appropriate consultation and planning.
The Decision to Invest
Investing in a real estate property should always be a well thought decision with due consideration given to risk tolerance, investment goals, the disposable money in hand, and the return-on-investment goal has in mind.
There may be some assets which are slightly beyond budget. Securing a mortgage deal to capitalize on the availability of an appropriate estate or property should also be considered as a financing option. Real Estate Investments is not about all-cash deals.
Unlike the modern virtual assets like crypto currency or fungible tokens, real estate is a tangible asset. It is a commodity which is visible and available for inspection while acquiring, giving on rent or selling. A residential or commercial estate can be leveraged to grow holdings even without readily available cash.
Before making the decision to invest in a property, it would always help to engage or consult with a specialist from the real estate world who can advise on the right investment decisions to be made.
33 Holdings has a team of specialists who have spent a decade and more studying the real estate sector and help investors make the right choice.
Returns On Investment from Real Estate
While there are investment instruments like the stock market which may turn in high returns on investment, they are also subject to severe volatility and market conditions risk. The chance of losing an entire life’s worth in a jiffy is a very real possibility.
An investment in a commercial asset or a residential property may not return astronomical gains, but they are also less likely to be completely wiped out unlike the stock markets or the virtual assets of the electronic world.
A carefully thought out and planned investment venture in the real estate segment may grow at a slow pace initially, however, they do have the potential to return consistent profits over a period. It would be prudent to seek the services of market specialist to go over the real estate segment and sign up for a customized in-person consultation session to discuss one’s goals and needs before committing to invest.
33 Holdings provides advisory and engages with potential investors to help in understanding the spread of properties and acquiring a diverse portfolio of assets.
Potential Risks of Real Estate Investment
Needless to say, real estate is not risk free or without potential pitfalls. However, none of them are so daunting or so discouraging as to be averse to acquiring a portfolio of diverse properties.
In times of need or emergencies, liquidating real estate asset takes time. It is not as spontaneous and instant as some other financial assets like stocks. Therefore, it is essential to consider one’s financial situation and the savings in hand before making an investment in the real estate world.
Any investment decision must be made by consulting experts like 33 Holdings who help understand the ground realities, market scenario and use analytics to arrive on investment decisions.
Once a property has been acquired, there are operational expenses and risks related to wear and tear of an estate. These include repairs and maintenances, rental management and handling tenants. These can be physically and mentally draining; having a broker or an agent as middleman to manage these may be a need. It also comes with a potential risk of losing some of the possible returns because of tenant churn, an empty residential property or a need to renovate a commercial estate to make it use worthy again.
The team of market professionals at 33holdings understand these risks involved. Any and every advise given is always based on considerations of such eventualities and other possible consequences. The deep-seated industry experience of experts, augments sound decision making.
How investing in real estate would help?
Real estate investors leverage their capital and enjoy tax benefits. It also provides for long-term cash flow and helps hedge against inflation.
Real estate helps with monthly rental income that can increase with inflation even in a rent-controlled environment.
Key takeaways
- Investing in real estate is a personal choice to be made considering all factors relevant to making the purchase decision.
- Real estate investment can come with its share of risks and returns, and it is upon investors to make informed, guided decisions to maximize their returns.
- Investing in real estate provides for passive income stream and a potential for substantial appreciation.
33holdings has a team of experts who regularly stay updated with investment opportunities, the risks and returns involved and help investors make well informed investment decisions.
Email us at ir@33holdings.com or call us at 678-824-4508.
