Why is real esate the best asset class to grow your wealth?
Updated: Jun 3
Everyone loves to receive good returns on their investments. Since there are multiple investment opportunities in the market, have you ever wondered - what are the best options?
Let's briefly discuss the different asset classes:
1. Stocks - When the market is volatile, stocks can be sold to overcome losses.
2. Investment Insurance - Required minimum locked-in period (usually years), high premiums every month, and financially strenuous for families. The cash return is low upon maturity.
3. Bank savings - The lowest return rate (0.05% interest rate) as compared to investments.
4. Real estate - Singapore’s private properties have growing at 57.37% for the past decade. This enables economic sustainability, increasing the confidence of the currency.
If you weighed the options, you wouldn’t miss out by investing in real estate!
A well-chosen asset’s value will increase over time, and can turn a profit when it is time to sell. Furthermore, passive income streams from rental will lead to higher cash flow and excellent returns with the possibility of leveraging real estate to build wealth.
An investment in real estate can diversify the portfolio as it serves as a safe, tangible asset to reduce the risk of investment. Many have amassed wealth by solely investing in real estate.
Most importantly, it hedges against inflation, as home values and rents typically increase with inflation.
We’ve spoken so much on the perks of real estate investment. Did you know - everyone in Singapore could be an investor today! Not through property-pooling, but being the genuine owner of your asset!
Start by leveraging on your humble HDB flat today. Wish to find out how you can do it? I am David Lim The SG Realtor! Click comment below or drop us a PM & we will get back to you soonest!