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Invest in Real Estate for Long Term Investments

The best way to mitigate investment risk is still akin to our old saying “never put your eggs in the same basket”. This means that it is wiser to spread your investments in several directions which is different from what you already have so that you will have room in getting a higher return of investment. These comprise diversification to add value to your product, and asset allocation to balance the risk and the reward induced by your enterprising business.

If you have a well diversified portfolio, it usually includes real estate and most investors get themselves involved in this. Despite the fact that brick and mortar trade have taken a knocking in recent months, real estate is still one of the most robust investment classes, especially in the long run.

Comparing risks between buying property and buying company shares should be factored in. There is a huge difference in risk between buying company shares and buying real estate, although company shares have marginally higher capital growth. It works in way that when risk is measured, you simply measure the variation of return versus capital growth which is shown to be +40% capital growth a year and a -40% loss in a week. What this figures tells is that it is easier to lose money in a short time when you invest in shares. There is not much risk associated with real estate investment, so it is a safer investment.
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if you compare buying a property over entering into a new commercial enterprise where you have no specialist knowledge, it covers a greater commitment because the longer the learning curve takes place, the greater the capital involved. It is easy to get started on a real estate investment. The big time realtors of today started out buying a house to live in and so they saw that the value kept on increasing and the wealth that can be theirs, this is what started them to go into the real estate business.
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Other than that, you can borrow more when using property as security compared to using a share portfolio. So if you have properties you can even support your new business venture from lender who lend up to 90% of the value of your property as security.

what this means is that property interments is low risk and a remarkably flexible investment. This adds value since it includes long-term capital growth, and positive cash flow.

Other than that, you also have complete control over it as long as you can keep up the mortgage repayments.

You can even slowly renovate it when you are looking at a long term investment. There is no need to hurry.