Real Estate is Better Than Investing in Gold
Gold and real estate have been good investments from practically the beginning of industrialization. People invest in gold because it’s believed to have a consistent valuation. Real estate is also considered a safe investment, and it’s readily accessible to many people. When you’re investing in your future, how can you know which is a better choice for your portfolio? Although both have pros and cons, many financial advisors believe that real estate is the better choice.
The Benefits of Real Estate
Although gold looks pretty and will be demand for years to come, real estate is typically more available due to your ability to finance your purchase. You can purchase a property and make payments while the value appreciates. In addition, you could even generate more income on that piece of real estate by leasing it or using it in your own business. Gold just sits in a vault somewhere, like dead weight. Gold may have increased in value by 356 percent in 14 years, but through real estate investing you could have earned an average of an 8.4 percent annually in the years 2000 to 2010.
Reasons Which Make the Real Estate Market Favorable
The price of gold is non-negotiable. This stabilizes the market, which benefits the economy. When investing in gold, it’s definitely a disadvantage. Real estate prices can be negotiated, and it largely depends on more variables than simply one organization that administrates the price as gold does. You are taxed on the profits from gold, and you may also pay a dealer’s premium of about 5 percent when purchasing. To use gold in something, you may be charged a meltdown fee. Although there are fees associated with real estate, they are not hidden. Real estate is usable. Even if you’re not investing in a commercial property, buying a home is an investment in itself.
Choose the Best Option for Your Portfolio
Real estate is all around you. If you’re investing in real estate, but can’t break into one market, you have other choices. It just makes sense to put your money into real estate.
Financing Your Real Estate Investments
Whether you have a property in mind that you need to finance, or want to have financing options in your back pocket for the next time a great real estate investing deal comes along, be sure to contact us at Davis Commercial Finance for all of your commercial financing needs.