Why real estate investment can be better than stocks and bonds

When looking for investment opportunities, many think stocks and bonds are the only way to make money. While these two vehicles offer serious benefits, the market is not the only way to invest. Some opt to buy houses and either fix them up and sell them or rent them out to people with a stable income. In fact, many find real estate investment to offer superior returns when compared to buying stocks and bonds. Here are four reasons why real estate can be a preferable option to equities.

Minimal investment: When buying a half million-dollar property, an investor can make a minimal down payment and still control a large asset. This is not the case when buying stocks or bonds, as an individual must have the money in his or her account. While a person can trade on margin, they cannot control hundreds of thousands of dollars with a small investment. Real estate is perfect for an investor getting started, as a small down payment and an excellent credit score are all one needs to see gains without having to use his or her own money.

Demand: When buying stock in a publicly traded company, one can see a nice short-term return. For example, businesses such as Apple and Google reward shareholders handsomely. However, for every large and successful corporation, there are dozens that never made it to the top. When buying a house, one will not risk such wild swings. Since people will always need a place to live, real estate and land should continue offering excellent short- and long-term returns for its investors.

Control: When investing in a stock or bond, an individual has little control over its performance and can only watch as the investment increases or decreases in value. When investing in real estate, a smart investor can take steps to improve his or her chances. When adding on a room or sprucing up a house or apartment, an investor will see greater returns in both rental rates and property value. Simply put, while an individual equities investor can’t impact his or her investment, a real estate buyer can make more money by trying harder.

Tax implications: When profiting off bond or stock trades, the investor will have to pay taxes. While not high, they do hurt the overall return on investment. Now, a property owner must pay taxes, but when fixing up a place, one can decrease the burden by writing off the costs. This is an often-overlooked advantage for a real estate investor.

What factors affect the real estate market?

If being in the real estate industry was easy, well, then everyone would be doing it. However, the truth is that no matter how personable you are, no matter how many connections you make, no matter how hard you work, there are certain factors you simply can’t control when it comes to the productivity of the real estate market. Here are some things to consider when evaluating your potential success in the field.

The economy

It seems like every real estate downturn gets blamed on the economy. There is a reason for this. The state of the economy plays a huge part in the amount of money that is available for people to buy homes. Factors such as politics and natural gas and oil production contribute to the state of the economy and, in turn, the real estate market. For example, if politicians are feuding over financial conditions, the real estate market could be affected as result of the dispute.

Interest rates

Politics, banks and the global economy can all influence the real estate market when it comes to interest rates. The real estate crash of 2007 proved the global impact of the real estate market and increased awareness of how interest rates and loans are used in home buying. If things aren’t looking good abroad, it might affect your ability to sell homes domestically. Keep an eye on what’s happening in the global market and with foreign investment as these play large roles into the expectations of the local market as well.

Demographics

Knowledge of demographic factors such as age, race, gender and median income of a particular area will help you anticipate market trends and better position your homes for sale. Knowing whether an area is home to an aging population or is attractive to young families better equips you to show the neighborhood to the appropriate buyer. And though you’d think an area with a bunch of new college grads would be a prime market in which to sell homes, recent grads are often too tied up in student loans to be serious candidates for a new house.

Working in real estate can be difficult but knowing how to anticipate its ups and downs can protect you when things turn south. Keep these factors in mind the next time you start prospecting for new buyers and you’ll have an advantage over other agents who simply don’t plan ahead.

The best promotional products for real estate agents

Working as a real estate agent is a rewarding and worthwhile career. It is the only job in the world where you can see the happiness and joy on your client’s face when they find the home of their dreams. However, the problem with this field is that the market goes through highs and lows, which can make finding clients difficult. It is at this time when you should rely on promotional efforts, specifically the time-honored use of promotional products. When you have the right items on hand, you can reach out to past, current and future clients easily and effectively. Here are some our favorite promotional gifts:

Barbecue aprons

Barbecue aprons make for a fun gift idea. Emblazon your logo and agency name on the front, and your clients will remember you every time they grill out. You can even throw in some grilling tools such as a grill brush, tongs and a spatula.

Sprout boxes

Sprout boxes are small boxes that come with seeds or sprouts inside. It’s an easy way to grow herbs, start a vegetable garden or just have fresh flowers for the home. This gift signifies to your clients that you want to see them flourish and thrive in their homes long after they sign the contract.

Tool kits

When you sell older homes and fixer-uppers, your clients know they have a little work to do after they move in. Get them started on the right foot with a small tool kit featuring your agency name. Filled with screwdrivers, hammers, and other miscellaneous tools, these kits allow your clients to complete a few simple jobs around the house, including hanging pictures and assembling furniture. With each project, your company’s name will be front and center.

Gardening tools

What could be better than a set of gardening tools with your company name on the handle of each piece? One of the first things people do when they move into a new home is think about the landscaping. These kits will give your clients everything that they need to start gardening as soon as they take ownership of their new house.

Memo Boards

The best promotional items are often the most simple. Many homeowners use a memo board to keep track of schedules or important dates, and you can turn a memo board into a cool promotional item for your agency. Look for boards that come in a house shape or that have a house design on the front. Every time your clients look at the board for information, they’ll see your name and number.

Promotional items keep your real estate agency front of mind for past, current and future buyers and sellers. All you need is a fun, useful product to help your agency stand out.