7 Effective Reasons Why Real Estate is Your Smartest Investment
Let’s admit it… we all want to get rich, instantly! And there are multiple options available to multiply your investments including Shares, Forex, Gold, Angel Investments, Business Partnerships, Fixed Deposits, and Real Estate. While all of the mentioned ones offer lucrative returns to your investment, but real estate investment is the most trusted by people all around the world.
If you are looking for the investment opportunities to protect your wealth and make it grow significantly, real estate proves to be the best one.
Below are solid 7 ways real estate is your smartest investment.
1. IT’S A PHYSICAL ASSET
The biggest reason that makes the real estate investment the best option when it comes to investments is that it offers you a hands-on investment opportunity. As you invest in a property, you can see the fruits of your finances. You are always a part of the whole money making process as people manage your investment property and you can see the way your money is spent.
You can have a clear picture of the latest real estate market, which means manipulating you isn’t going to be easier by the agents. You get a clear picture of the value of your investment. Unlike the blind process where you send money to a company’s employee who then chooses your stocks, you see tangible results and work with people you know.
2. IT’S SOLID PASSIVE INCOME
While you are responsible to manage your property, real estate investment offers some pretty solid passive income. You look for tenants, deal with other issues and provide proper home insurance coverage. This income will especially be of value when you near retirement. Earning solid passive income from the real estate property is a great way to train you to save for retirement.
3. THE MARKET IS ALWAYS GOOD
According to the experts, the real estate prices increase by 12% annually. Hence, you are sure that you’ll get the benefit of your investments whenever you sell it. The land is limited and the number of people is increasing each day, which results in more property value, resulting in more benefit and profit to the homeowners.
4. YOU PAY FEWER TAXES
The not only real estate investment allows you to multiply your funds but also lets you save more on the taxes. The tax benefits you enjoy include unlimited mortgage interest deductions and depreciation accelerations. While you purchase an investment property, the IRS allows investors to defer all taxable improvements into the future.
5. YOU WORRY ABOUT LESS RISK
While there are chances that the natural disasters will collapse the home or you may face losses due to any other reason, but real estate is always less of a risky investment than other types, such as stocks. For example, stocks are quite volatile and when they dip and grow so does your investment, immediately. On the other hands, real estate market goes up and down time to time and the changes take place quite slowly. According to experts, many homeowners have had good experiences with taking out loans from them. Here are some of the ways to reduce risks when buying investment property. Read More…
6. YOU CAN COMBAT INFLATION
Another reason that makes real estate investment the top choice among global investors is that it has proven to be protected against the decreased value of the currency. Of course, inflation is inevitable, but you can you can adjust the expenses by raising the rent. Also, your investment is a commodity gaining value. As the worldwide economy inflates, the income you get from the investment property is also likely to increase.
7. THEY’RE NOT MAKING ANY LAND
I’d like to exclude Dubai from this list as these guys are excellent at creating more land… just look at the Palm Island. However, it is also limited to an extent and you can’t create natural lands. So, the value of your property is always going to increase as more and more people will want to buy homes for their kids, themselves, their growing businesses or any other reasons. Around the world, lands are going to be in high demand while the land supply will remain the same.
Originally Published at InvestmentRealEstate.biz
If you are looking for the investment opportunities to protect your wealth and make it grow significantly, real estate proves to be the best one.
Below are solid 7 ways real estate is your smartest investment.
1. IT’S A PHYSICAL ASSET
The biggest reason that makes the real estate investment the best option when it comes to investments is that it offers you a hands-on investment opportunity. As you invest in a property, you can see the fruits of your finances. You are always a part of the whole money making process as people manage your investment property and you can see the way your money is spent.
You can have a clear picture of the latest real estate market, which means manipulating you isn’t going to be easier by the agents. You get a clear picture of the value of your investment. Unlike the blind process where you send money to a company’s employee who then chooses your stocks, you see tangible results and work with people you know.
2. IT’S SOLID PASSIVE INCOME
While you are responsible to manage your property, real estate investment offers some pretty solid passive income. You look for tenants, deal with other issues and provide proper home insurance coverage. This income will especially be of value when you near retirement. Earning solid passive income from the real estate property is a great way to train you to save for retirement.
3. THE MARKET IS ALWAYS GOOD
According to the experts, the real estate prices increase by 12% annually. Hence, you are sure that you’ll get the benefit of your investments whenever you sell it. The land is limited and the number of people is increasing each day, which results in more property value, resulting in more benefit and profit to the homeowners.
4. YOU PAY FEWER TAXES
The not only real estate investment allows you to multiply your funds but also lets you save more on the taxes. The tax benefits you enjoy include unlimited mortgage interest deductions and depreciation accelerations. While you purchase an investment property, the IRS allows investors to defer all taxable improvements into the future.
5. YOU WORRY ABOUT LESS RISK
While there are chances that the natural disasters will collapse the home or you may face losses due to any other reason, but real estate is always less of a risky investment than other types, such as stocks. For example, stocks are quite volatile and when they dip and grow so does your investment, immediately. On the other hands, real estate market goes up and down time to time and the changes take place quite slowly. According to experts, many homeowners have had good experiences with taking out loans from them. Here are some of the ways to reduce risks when buying investment property. Read More…
6. YOU CAN COMBAT INFLATION
Another reason that makes real estate investment the top choice among global investors is that it has proven to be protected against the decreased value of the currency. Of course, inflation is inevitable, but you can you can adjust the expenses by raising the rent. Also, your investment is a commodity gaining value. As the worldwide economy inflates, the income you get from the investment property is also likely to increase.
7. THEY’RE NOT MAKING ANY LAND
I’d like to exclude Dubai from this list as these guys are excellent at creating more land… just look at the Palm Island. However, it is also limited to an extent and you can’t create natural lands. So, the value of your property is always going to increase as more and more people will want to buy homes for their kids, themselves, their growing businesses or any other reasons. Around the world, lands are going to be in high demand while the land supply will remain the same.
Originally Published at InvestmentRealEstate.biz
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