History of investment and how to win against the odds

Blog March 2024

Men and women have always been interested in ways of managing and increasing wealth. One of the fastest and most efficient ways of cultivating wealth is by investing in assets. So, what types of assets can you invest in today? The main options to consider are stocks, bonds, funds, crypto, gold, and real estate. The investment structure itself originated with stock markets.

The beginning of investment

The first stock market can be traced back to the 1600s! The Amsterdam Stock Exchange was created in 1602 to trade in shares of the Dutch East India Company – the first company ever to issue stock. After this innovative move, others slowly started to follow suit. By the late 1700s, a group of merchants founded an elite market – the New York Stock Exchange with the Buttonwood Agreement. Why the name? It was simply a rumor that they met under a buttonwood tree! The elitism of these circles would soon begin to shift as the economy prospered and investors flocked to the rising market. In 1929, the stock market crashed but not for long. It gradually restored itself and the introduction of computer data processing in the 1960s sped up the process.

When did real estate become an investment?

Housing was the first type of real estate investment to really take off in the US. With the rise of the roaring 20s came financial security and an eagerness to invest in real estate. But as the economy declined, so did the demand for housing. Interest in real estate stayed low until after the end of WWII. Over a decade later – in 1960, Eisenhower signed legislation that made it possible to procure income via the combination of real estate and stock investments. Public interest in housing and real estate investments resurfaced from there. After the housing crash of 2008, the market received a sudden supply of displaced homeowners forced to search for leasing options and many distressed properties. The mortgage rates being as low as they were, the housing market experienced a Renaissance.

How to win against all odds (With GCG Real Estate)

So, for over 400 years, markets have risen and fallen. Investors of all spheres have faced many ups and downs, many markets have crashed. The question then is – how can you, as an investor, win against all odds if investment markets are so volatile? Why would you even invest your money?

Well, keeping your savings in a bank isn’t reliable, as inflation shrinks your savings. The safest way to store your capital is through tangible assets. Real estate is among the few assets that isn’t easily devalued and is least susceptible to cultural shifts. Today, any drops in housing and real estate prices are sure to resurge. You can safely invest your money and be confident that you will get significant returns.

Still in doubt as to what’s the easiest and safest option? With our simplified process, we take the ambiguity and risk out of choosing, and provide you with the security and means to procure generational wealth.

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FAQ

Any questions

What is affordable housing?

Affordable housing refers to housing units designed to be accessible to low- and moderate-income families, typically costing no more than 30% of their gross income.

The definition of “affordable” typically varies depending on location and income levels but generally encompasses rent or purchase prices that don’t exceed a certain percentage of a household’s income.

What is Section 8 housing in the US?

Section 8 is a federal rental assistance program in the US run by the Department of Housing and Urban Development (HUD) that helps low-income families and individuals afford decent and safe housing in the private market. 

The program provides eligible households housing choice vouchers that cover a portion of the rent directly to the landlord, with the tenant paying the remaining amount. Property owners who participate in Section 8 agree to rent units to qualified individuals and families at a rate approved by the program.

How can I invest in Section 8 housing?

There are several ways to invest in Section 8 housing:

  1. Direct ownership: You can purchase a property approved for Section 8 and rent it to a qualified tenant using a voucher and receive rent subsidized by the government.
  2. Real estate investment trusts (REITs): REITs pool investor funds to purchase and manage income-producing real estate, including affordable housing.
  3. Limited partnerships: Limited Liability Companies (LLCs) offer another option for investors to pool resources and invest in affordable housing projects.
What is the difference between multi-family and single-family properties?

Single-family property: This refers to a standalone house or unit designed for and rented to one household.

Multi-family property: This refers to a property containing multiple dwelling units, such as a duplex, apartment building, or condominium complex. Multi-family properties offer the potential for higher rental income but typically require different management strategies and considerations compared to single-family homes.

What is the difference between buying and flipping houses?

Buying and holding: This involves purchasing a property to keep it as a long-term investment, generating rental income and potentially appreciating in value over time.

Flipping: This involves buying a property, renovating it to increase its value, and then selling it quickly for a profit. This is a more hands-on strategy with higher risks and rewards compared to buying and holding.

How much do I need to start investing in affordable housing real estate?

The minimum investment required varies depending on the chosen method. Direct ownership typically requires a higher initial investment for the property purchase, and renovation up to Section 8 standards, while other options like REITs might have lower minimum investment amounts.

Do I need to be a US citizen to invest and own the property?

No, US citizenship is not a mandatory requirement for investing in affordable housing in the US. However, specific restrictions or regulations might apply depending on the investment method and your residency status.

It’s crucial to consult with a professional to understand the legal and tax implications for non-citizens.

Do I need to pay US tax as an overseas investor?

This depends on the type of investment, your residency status, and any applicable tax treaties between your home country and the US.

Consulting with a tax professional specializing in international investments is highly recommended.