Real Estate Investment – Benefits and Importance
If you are a person who wish to attain success and wealth in ways you could never imagine then real estate business is something you must consider. If you want to learn more about the benefits of real estate investment then it would be best to read the following information.
1. Stable Source of Income
The percentage of returns every year is about 8 to 10% in an average market. If you are to compare the consistency of the returns you get from these properties to a money market or savings program it’s undeniable that the real estate investment is much better.
2. Real Estate Industry Is Fairly Easy to Penetrate
One thing that you can be assured of in the real estate industry is that you can start in this business even if you don’t have that much. Even if you cannot purchase a penthouse in huge cities just a small property outside the city could be a good start.
3. Leverage Is Possible
Leverage means a particular creditor will lend some amount of money to people in developing certain property or investing it. With this, you don’t need to be the source of all the cash necessary for your investment endeavors.
4. Property Value Increases Continuously
One thing that you can be assured of in real estate is that the value of properties are constantly increasing. If you are to compare the value of stocks and real estate properties, it is safe to say that real estate continually increases over time.
5. Stable Investment
What makes real estate investment better is the fact that the returns in this endeavor is stable whereas in stocks a minute ago you’re on top but couple of days or weeks returns might drastically drop. With that you can say, in real estate your patience is put to the test since the rise in money is slow but you can be assured that failure is less likely to happen.
6. Tax Related Gains
In owning a property you don’t necessary need to upgrade all the time perhaps at a certain time instead of upgrading the property you can add it to your investment income.
Have you heard of IRAs, this is also a good type of real estate investment. In IRA, so long as the profits you gain from your current investment is stored in it you will not have any tax problems until you are already capable of purchasing another property that you want.
7. Invested Amount Keeps on Growing
The main difference with investing in a certain company stocks is that you don’t necessarily have the full control over the company since you only own a portion of it.
In real estate investment it’s kind of different since the more you invest in a certain property the higher it’s value is.