Real Estate As An Alternative Investment

The term "alternative investments" has been popular the last few years. This trend began when investors started looking for others ways to invest their dollars without using the traditional route of equity market.  Equities are too volatile in the current setting that investors try to avoid playing in that market.

What does an investor do when the equity market becomes too risky? The answer could be to invest in alternatives. Alternatives come in many forms. They can be commodities or real estate.  Real estate is the area where most people are familiar with, so most people are likely to invest in real estate. 

Investing in real estate holds certain benefits such as additional income (in the form of rental income), tax benefit and some stability. 

The question is when do you invest in real estate? Like anything else, hit it when it's cheap. Real estate is cheap when demand is down, and demand is down when economy is weak. While the economy is weak, real estate is less expensive and interest rates are low. If you decide to buy now, you can lock in low rate mortgage loan. Real estate generally goes up in value. In my opinion, now is a good time to invest in real estate.

Making a real estate investment is pretty straightforward. You look for a piece of property in a prime location, and if possible, with minimum to no remodeling required, get a mortgage from the bank, pay the closing fees and you're done! You are a Real Estate Investor! But no investments are successful unless you put in time and effort. Make sure to do your homework and calculations before investing in Real Estate. 

Rentals are great options for investing, it provides you with a secondary income without too much effort on your end. (Well, except for the regular maintenance of your rental) Or you can invest on a vacation home. You can use it for your own personal use or you can rent it out during the summer where tourists are visiting our great State, Alaska. Just advertise it on Craigslist and I'm sure someone will rent it.

In a whole, Real Estate as an alternative investment could be a good addition to your portfolio. However, make sure that you pay attention to the details, if you cannot take the time to learn the details, consult with an expert Realtor who knows the real estate market.  There is a lot of things you need to know, but the benefits could be worth your time and effort.  If you need some advice in real estate investing, please don't hesitate to contact me.