The following key factors are commonly accepted as the major reasons real estate continues to be a good investment. For the majority of real estate participants, these factors are the most critical issues in a real estate venture.
1.) Real Estate is a Necessity: Real estate is at the very core of human existence. We all have three important basic needs: food, clothing and shelter. Our world continues to expand as more and more people are being born every day. In addition, there continues to be larger migrations of people from rural areas to more populated locations. Therefore, people will always have the need for temporary lodging, permanent shelter and places to conduct business.
2.) Hedge Against Inflation: Inflation is the invisible force eating away at the purchasing power of our dollars. A dollar, however, doesnt buy today what it once used to. It is also evident that the quality of goods our dollars purchase is also diminished. For instance, the McDonalds Big Mac has become progressively smaller year after year. Plus, when we purchase a box of our favorite breakfast cereal, the bag inside the box is practically half empty.
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