Have you recently acquired a decent sum of money, either by winning the lottery, selling stock, or saving up after a few years of hard work? And if so, do you want to increase the number of investments in your portfolio? When considering your future financial prospects, real estate is a fantastic opportunity that you won’t be sorry you invested in.
Investing in real estate is not just about buying homes for yourself and your family. It also involves investing in other properties either for short term or long term purposes. Properties you could invest in include smaller apartment buildings, duplexes, office buildings, resorts, and even condos that are rented out to tenants.
Here are a few reasons why you should invest in real estate:
- It’s easy to start. It’s not necessary for you to have a certificate in real estate management for you to be an investor. When you purchase a property for yourself, over time you will notice that its value increases, meaning you can eventually buy more houses to own down the road. When the value appreciates, you generate even more income than the amount used to purchase the property.
- You have 100% ownership of the property. When purchasing a property, the title and rights are offered in your name and so you can do whatever you wish to do with it. It’s usually advisable to purchase dilapidated buildings and change it to a style that best suites you. If you’re looking to remodel or renovation, to help out with those home changes.
- Flexibility of investments. Depending on your financial status, prices for purchasing investments are negotiable. And due to the success rate in real estate investment you can easily get loans from the very beginning.
- Appreciation and depreciation of the property. When you purchase new property, it will appreciate over time especially when renovations have already been carried out, leading to a double in the price of purchase. The longer a property stays, the more tax is deducted from the property by the government due to costs and finance used for upkeep of your property.
- Owning a property is always an asset. When you purchase real estate properties, there is always the assurance that no matter what happens, it presents itself as an asset for you. Properties are stable investments that cannot be moved from place to place so there can be no loss. They can be used as collateral in the case of financial crises.
- Demand and supply of real estate. With the world’s population increasing every year, the demand for housing is on the rise while the supply is limited. This is also dependent on the area you purchase your investments, so remember that it’s very important to critically study the area before making your purchase and investment.
- Social benefits. As far as real estate investments go, financial benefits are always number one but there are also social benefits. Most houses are owned by the government and being able to own a home can boost your social status in your area. Many may not find this so important but it still poses its own benefits for some.
- Tax benefits. Say you purchase a house at $50,000 and overtime it appreciates to a value of $110,000. That means you’ve gained $60,000! The gain belongs solely to you and there is no tax on such capital. Should you decide to sell, the government deducts fees from your task as repayment for money spent for upkeep.
- It can be passed down. Investing in real estate is usually long term and if properly maintained, a property can be passed down for generations. This means that you’re investing in your children’s future!
- You get the financial know-how. Investing in real estate teaches you a lot about finances and how they can be handled. This can help you stay wealthy and financially sustained for a long time to come.
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