It’s no secret that real estate is a sound investment. Over time, property value tends to increase, making it a safe place to put your money. But many people don’t know that real estate development is an even better investment than simply buying and holding property.
Richard Zahn, the former CEO of ZMG Construction, says that real estate development “is the business of creating value by improving land and buildings.” By definition, real estate developers are in the business of making money off of their investments.
So why is real estate development such a great investment?
1. Real Estate Developments Offer Stability And Security.
Unlike stock market investments, which can go up or down suddenly, real estate values tend to be more stable. This makes real estate a more reliable investment choice, especially in uncertain economic times.
2. They Provide Consistent And Reliable Returns.
Real estate developments offer a consistent and reliable return on investment, which is not always the case with stock market investments. This makes them a safer choice for those looking for a solid return on their money.
3. They Are A Recession-Proof Investment.
While the stock market may crash during a recession, real estate values usually remain stable, making them a safe investment choice during difficult times. In fact, real estate development can even be seen as a “hedge” against stock market crashes.
4. They Are A Long-Term Investment.
Real estate developments are not short-term investments – they are long-term commitments. This means that investors have the potential to see significant returns over time if they are patient enough to wait for them.
5. There Is Potential For Capital Appreciation.
Not only do real estate developments offer consistent and reliable returns, but they also have the potential for capital appreciation. This means that investors can earn rental income from their properties and see their original investment increase in value over time.
6. They Offer Tax Benefits.
One of the biggest benefits of investing in real estate developments is the tax benefits that come with it. Investors can enjoy significant tax deductions on their rental income, depreciation expenses, and more – making this an incredibly tax-friendly investment option.
7. There Is A Low Correlation With Other Asset Classes.
Unlike many other types of investments, such as stocks or bonds, real estate development has a low correlation with other asset classes. This means that when one type of investment performs poorly, you can usually expect real estate development to perform still well – making it a more stable investment option overall.
Bonus Reason: They Offer A Unique Opportunity To “Add Value.”
Another great thing about real estate development is that it offers investors the unique opportunity to “add value” to their properties. By making improvements or additions to a property, developers can increase its value, which increases their return on investment.
There are many reasons why real estate development is such a great investment. From the stability and security it offers to the potential for capital appreciation, there are numerous benefits that make this a wise choice for those looking to invest their money.