Why Should I Invest in Real Estate?
The art of making money is not known to many. An important portion of this art lies in the real estate market. You can make different kinds of investments and find ways to multiply your money through stocks, bonds, mutual funds, currencies, and commodities. But believe you me that real estate can take you to the next level of the food chain. Off course there are both positive and negative aspects of this type of an investment but trust me, once you get a hang of the real estate profits, you are never going back. Let’s did deep into why real estate in a better option when it comes to multiplying your money.
Perks of Investing in Real Estate
Real estate investing can prove to be rewarding when it comes to its perks. As we know that each person has their own reason for doing things. Nevertheless, the most common and evident stated reason for investing in real estate is the financial freedom attached to it. On the other hand, I wanted to bring the following advantages to your attention:
- Boast in your net worth: Real estate investing can prove to be worth more than just the cash flow is generated for you. With the help of such investments, you can increase your net worth to ten folds. This will not only make you look good in front of the banks but will also help you broaden your portfolio as an investor.
- Appreciation: Appreciation is the increase in the property’s value. If you are in the real estate business for the long run, you might consider investing in certain properties keeping a longer time-frame in mind. Over time the worth of the property will only increase and this will make you enough money that you won’t even need retirement savings.
- Tax Reductions: This is one of the best things about real estate investing. An investor can claim the interest portion of their monthly mortgage payment as a tax deduction. Apart from that, property owners can save a lot more by bifurcation.
- Cash-flow: One of the most important trade-off in real estate in the cash flow. This cash flow can be generated by investing in rental properties. Each month the account is credited with money and you get to leave the rat race by generating income without having to work for it.
- Depreciation: We all know that the value of the bought property always goes upwards. Still, the government allows investors to use depreciation as a means of a tax deduction. You can show the work you had done on the building and how it has depreciated over time and get a tax deduction.
- Safety of Finances: Real estate has been upheld as the safest investment mode with guaranteed ROI. If you use your own money to buy a house worth $100,000, it is projected that by the end of the year you will gain a 5% profit. However, if you get the help of a bank and invest 20% of the total worth of the house, you will be getting a 25% return on investment, given that the annual ROI is 5%.
On the whole, real estate investing is a ground that you must pay a visit to at least once in your life. It will not only save you money but will also help you make more by increasing your net worth, cash flow and reducing your taxes.