Like all other investment markets, the real estate market is filled with misconceptions and untruths. What you have heard through the grapevine might not be true and it is vital for you to research and decide which are the truths.
Here are the top four misconceptions about real estate investing:
#1 Real estate investment is only for the rich
This is the biggest misconception about real estate investing. Real estate investment is a powerful wealth building tool and although studies have shown that 90% of the millionaires in the world have dabbled in real estate, it doesn’t mean that it is only for the rich. In fact, you do not need a huge amount of capital to start investing in real estate and this brings us to misconception #2.
#2 You need a huge capital to start
Many people are hesitant to invest in real estate as they have the notion that one needs a huge amount of money to start investing in real estate. However, there are many ways to invest in real estate with little capital. Examples include real estate crowdfunding and real estate investment trust (REITs). It is perfectly fine to start out small, invest within your means and slowly build up your investment portfolio.
#3 Too young or old to invest in real estate
There is never a good or bad time to invest in real estate and age is not a barrier to real estate investing. If you are in your 20s, you can start small and develop profitable investment portfolio over time. Even if you are a retiree in your 60s, you still can start investing in real estate. In short, with proper planning and strategy, anyone can invest in real estate.
#4 Investing overseas properties are risky
All investments come with a certain degree of risk. Investing in overseas properties might be riskier to a certain extent, however, with proper research and knowledge about the country and properties you are intending to invest in could actually be safer and more stable. You might be able to earn a higher rate of return on your investments as there is a correlation between risk and return.
In a nutshell
Real estate investment is not only for the wealthy. With proper planning and strategy, anyone can invest in real estate and be successful in creating a profitable investment portfolio.
All information in this article is correct to the best of our knowledge and belief at the time at which the article was originally published.
This article was written in the author’s personal capacity. Any opinion expressed in this article are the author’s own and
do not reflect the view of Vivaz Capital Pte Ltd.
Vivaz Capital, a subsidiary of Vivaz Group Holdings Pte Ltd, is a private marketing and consultancy firm, headquartered in Singapore.
We market and bridge opportunities across Asia.