Back in the year 2013, purchasing real estate property at a discount was a fairly easy undertaking. Assets were affordable back then, and not many were looking into it. The investment climate has radically changed since then.
Today, throughout the real estate industry, it is typical to stumble over overpriced properties and premium-priced assets that make deal hunting an almost impossible task. Now if you sit and wait for a good deal to be available, you may just have greater chances of winning the lottery.
An investor in real estate cannot successfully predict where the market direction is headed. Although the real estate industry has evolved into what it is today, there are three good reasons why you should still be investing in South Florida.
The importance of creating a consistent discipline and sticking to it
Markets experience peaks and dips, and depending on the scenario, an investor can discern whether he has to be aggressive or defensive. During dips when prices at the bottom of market cycles, investors in real estate should be aggressive. Conversely, when prices are high at market peaks, investors should be defensive. This creates an investment discipline that can benefit any investor in the long run.
It is said that the best investors in real estate do not just sit and wait for the best deal available. Rather, they are smart and regular real property buyers especially during market downturns, disciplined and consistent in their payments, and patient in waiting for the market to reach its peak. They have the ability to create opportunities that others don’t see and profit from it.
Alternative investments are not as simple and reliable as real estate
One of the greatest quotes by Warren Buffet is, “Be fearful when others are greedy, and be greedy when others are fearful.” Industries and markets other than real estate are difficult to predict with accuracy. The stock market, for instance, is a very volatile market. If you’re not well-versed in chart and market analysis, you will be unable to identify the best stocks to purchase, the perfect time to buy them, and the best time to eventually sell them for a profit. Similarly, foreign currency trading also requires some serious education so as not to lose your hard-earned cash because of wild guesses and rumors.
The most recent investment fad is cryptocurrency trading. If you don’t know much about these markets, it would more dangerous for you than profitable. On the other hand, real estate is a fairly direct and simple industry to invest in. Andrew Carnegie once said, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
Land is becoming an even scarcer commodity than ever before
We all know that price is driven by supply and demand. Where demand is high, and supply is low, market prices are driven upwards. Since land is a scarce asset/commodity, you can expect its prices to continue to appreciate in time. Mark Twain put it very well when he said, “Buy land, they’re not making it anymore.”
Investing your hard earned money is a serious task, and there is no one way that can guarantee its growth. However, among all available options, the simplest and most reliable means is through real estate.