Supply and demand might just be the most important factors in our economy. How much of something exists, and how badly people want it, are the defining aspects of how that market works. From an investor’s perspective, the best bets are ones where demand outstrips supply. With these kinds of investments we find success because there will always be people willing to exchange money for what we have.
That brings us to real estate. The fact is, everyone needs a place to live. Housing is a necessity. So, with that in mind, it just makes sense that real estate would constantly be in high demand. Everyone needs it, so everyone is on the market for it. This means that if a person invests in residential properties, they shouldn’t have much trouble finding people to rent to.
There are a few reasons that demand is greater than supply in the real estate market. One is that demand for housing increases with the population, and the population isn’t getting any smaller. But just because the need for housing has increased, doesn’t mean the supply has. Constructing new rental units costs money, and it’s a cost that won’t be immediately made up for. Profiting from a newly built building takes time.
Meanwhile, many existing apartment buildings have, in the past few decades, been converted into condos. This leads to even fewer options for renters. But people still need places to live! So, by investing in a piece of the real estate pie, you’ve invested in a market that works in your favor.
A market where demand outstrips supply is one that works for investors. Real estate can provide that kind of environment. It’s something everyone needs, and as long as people need shelter, it’s going to stay that way. This is one of the many reasons real estate can be such a lucrative investment.
ABOUT JAKE AND LEANNA
Jake and Leanna are actively involved in the Greater Philadelphia Market area real estate investing for a number of years. Their mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for their investor partners and themselves. It is truly a win-win-win way of investing!
Jake and Leanna offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, don’t hesitate to get in touch with Jake and Leanna.