Why are People Afraid of Venturing in Real Estate?
The real estate business is a life-changing venture that anyone dreaming of creating wealth can get involved in. The fact that people are in dire need and urge to gain wealth , they should be on the look out for any real estate business that suits them. However most people are afraid of venturing into this business.
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This fear has been common among lots of people and has become an invisible wall preventing them from actualizing their dreams. Some of the reasons people have for fearing to venture into it despite having knowledge on real estate are;
Lack of money
Most people are in the category of middle-class lifestyle and earn moderate incomes or maybe having a lot of expenses, leaving them with little or no money in their savings. Most of them believe that money is the most important factor when beginning any kind of business. Money is an asset that not all people find it easily and so the little they have, they hold on to it so preciously with fear of losing it in any way, including investing. They claim that returns are not always guaranteed. They hate losing more than they like winning and therefore they prefer playing safe when it comes to their finances.
However, this should not be the case since there are lots of other ways in which people can start investing in real estate with no capital. Some of these ways can include;
- Buying a home then selling it later when the value appreciates.
- Buying a duplex home where you live in one unit while you rent out the others. The rent acquired from the other units will probably pay a good portion of your mortgage.
These ways really helps when you do not have capital to invest in real estate. One can also start saving up the money they need for the business by cutting down on some bills, by being creative and by making low money.
In his book, "Investing in Real Estate with No (and low) Money Down," Brandon Turner gives real-life strategies for investing in real estate using low or no money. He shows how people can make wealth with or without money.
It is not the right time
There is never the right time to invest in real estate, it is always the right time. People believe and assume that one can only start investing in real estate when they get financially stable or maybe when they get older. However, investing when still young is the best time. This way, your investments are going to appreciate in value with time and by the time you get older, you would have accumulated wealth. Investing at a younger age is good since one would not be having a lot of expenses and commitments and thus you would have enough time to look into investing.
I cannot find the right investment
When it comes to choosing the right kind of investment to venture into real estate, one should consider the returns in terms of cash flow. People hate losing and thus the fear of investing on something, only to end up losing their money. A good knowledge on real estate helps to identify the different kinds of investments and one can be able to identify the one that is more profitable.
Investing your money across many investments could help curb risks as compared to investing all your money in one market. Market storms oftentimes affect investments and a good way to protect your investments against market storms is to invest in a lot of companies and markets thus poorly performing investments will likely be balanced out by others doing well.
