You search up on the internet and read about it in books, maybe ask a friend or two; yet still, all over the country, many people are trying to pinpoint the exact reasons to invest in real estate. This is definitely a re-occurring topic and a question commonly asked. “What are the reasons for investing in real estate?” Today, I will state some of the main reasons to invest in real estate in hopes of answering your curiosities. Let’s begin!
1. Power and stability
The last few unstable economic years taught investors that they must find assets that are both powerful and stable and owning a rental property is it. By powerful, I mean that investments that act as a hedge against inflation and have the ability to grow at wealth producing rates of growth through leveraging. By stability, I mean investments that grow in value steadily and surely, without major fluctuations in value.
2. Great long-term investment
Why is real estate a good investment? Well regardless of recent years’ crisis, real estate is still a good, long-term investment. If you look back 30 years, real estate is still valued much higher than it was. And if you have tenants paying your mortgage, it makes the investment that much more profitable.
3. Price appreciation
Real estate values generally increase over time. This is because of a very simple concept known as supply and demand. You see, our population is growing every day and it looks like it won’t stop anytime soon. So every day the demand for property is technically growing higher and higher, bit by bit. And simple economics orders that when demand is high, prices follow. So with more and more people in need of a home, prices generally go on an upward trajectory. Also, you have to factor in improvements in the surrounding area. A new access road or a hospital or school a few kilometers away will definitely have a positive impact on the property values. This is a very alluring reason to invest in real estate.
4. Something for your family
Probably the best reason you could have to invest in real estate is that it is something you and your family can enjoy. Imagine all the memories you can have with your children as you watch them play in your house. Imagine the thought of sleeping soundly in a house that you own. Imagine the pride and joy of having something to your name. Sometimes it is not just making money in real estate that makes it such a great investment. It is also the prospect of buying a home, not just a house but something your family will cherish for years to come.
5. It’s not rocket science
When you decide to invest in real estate you don’t need specialist knowledge to start. It is easier to research than stock and shares. Understanding the stock market requires a lot of education as well as research brokers and fund managers to help. Investing in property is, however, a lot simpler; it’s as simple as jumping online to start looking for properties from legitimate and registered realtors, real estate firms or property and real estate listing websites. A significant amount of research can be done online, by visiting open houses and auctions or contacting realtors and real estate companies without needing to have vast specialist knowledge beforehand. And you can start here on Mashvisor where everything you need to know about real estate is found to help you succeed in real estate investing!
6. It’s relatively easy to get finance
It may not feel like it when you’re applying for a mortgage, but lenders like property. Home loans are a major part of any bank’s business model, and lenders are more likely to lend for residential property than any other asset class. This makes it a lot easier to borrow to invest in real estate.
7. Tax benefits
It would be stupid not to highlight one of the most important benefits for real estate investors: the fact that the tax office allows you to write off investment expenses against tax, thus lowering your income tax bill and offsetting any shortfall between rental income and holding costs either partially or in full.
8. Price is flexible
If you buy a share, you buy it at the market price at that time: there’s no scope to negotiate. When you choose to invest in real estate, it’s exactly the opposite: buying and selling is all about negotiation. You or someone working for you can talk down a vendor; equally, a motivated buyer could pay over the odds for the right property. There’s also a huge possibility of finding undervalued properties, particularly deceased estate or mortgagee sales, or sales due to divorce.
9. It’s as safe as houses
“Safe as houses” is a popular slang in real estate investing that basically means real estate investments are perfectly safe because of the paying character of house property as an investment. Property value tends to increase without the instability of the share market which makes it an all-around safer investment. When you factor in the return and risk associated with buying property and shares, property is considered a far safer investment.
10. You have FULL control
For property investments, once you’re done paying for the property and settling legal requirements, you directly own the asset and have almost complete control over it. You can directly influence the asset worth by adding value to it and cash flow, maybe by raising the rent.
So, invest in real estate. You have 10 awesome reasons to do so!
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