There are a number of reasons considering real estate as the best option among shares and other deposits. Its advantages range from increasing investment opportunities, higher returns, and amazing tax benefits. So, here we highlight why property investment is a great decision for new buyers.
Table of Content
7 Reasons For Investing In Real Estate
- Investment Diversification
If you consult with a financial planner before investing in property. Ask them about the various investment opportunities available in the country or city. They will provide you complete detail regarding investing in rental property, commercial properties, residential purpose houses, vacation properties, and many more. You must check out the pros and cons of all investment options and then compare them with your needs.
Keep in mind, if you have excess funds, then do not put all eggs on one basket. Invest funds wisely in two or more options to enure portfolio security. This will increase overall property value even in the case of a fluctuating economy.
- Better Returns Than Stock Market
Real estate is always trustworthy than other forms of investment. If you want to buying a house in Canberra, it’s value will always keep on increasing for the time you hold property. This means you can get the benefit of free residing, and when plans to sell, you can sell the house at a lucrative deal. Till that time, you can enjoy all the rights of a landlord on the property.
On the other side, if you invest in the shares market, you cannot control certain external factors that put a negative impact on investment. But in real estate, you can hold your tangible property for a longer tenure, and selling will serve you higher capital appreciation.
- Liberty to invest the Smallest Savings
Real estate investments provide liberty to owners to invest even the smallest portion of saving. Like, if you want to buy property, you can pay your savings as down payment and the rest amount can be paid in the form of monthly equated installment to a financial institution for loan repayment. There are other options, like investing in real estate crowdfunding or investing in real estate investment trust (REIT).
- Property is recession-proof
Property investment is always called recession-free, as even in the economy’s worst conditions, people need space to live. They all need a roof over their head. Therefore, whether you invest in luxurious property or rental property, there will be no scope that your income will reflect too high. Your tangible asset will always be saved. Even if you invest in commercial property, you will receive monthly rent, whether the businessman is earning profit or loss.
- More Opportunities To Generate Passive Income
The rental property serves more opportunities to generate passive income. For example, if you invest in generating income after retirement, you can buy a multi-unit house where you can keep one unit for residential purposes and can get rental income from the rest portion. The rental income also provides you with an opportunity to either clear mortgage amount or buy another property from rental income savings. Rental property can keep your earnings from day one of investment.
- Taxation Benefits
Investing in properties serves a number of tax benefits. One can deduct the cost of financing and repair costs from the taxable income. In addition, you can also deduct taxes, and other related expenses on buying and maintaining the property. All these costs reduce the tax burden and minimize the payable amount.
- Property Can Make You Rich
Real estate makes people more billionaires than other sources of investment. Let’s explain it with an example; an investor can buy under-construction buildings at a lower price, and with little improvements, can sell at higher rates. There is another option if you have $100000 to invest. You can buy four units with a $25000 down payment. The rest amount can be easily paid through EMI. Then let out or selling these units can give a boost to your property value.
The real latest investment is safe as compared to other financial investment avenues. But, before investing, you need to conduct a complete survey regarding property and investment options. For this, do not hesitate to take advice or hire a professional real estate agent. The property manager will crack your deal at the best possible price and in the most profitable property. You can also find out renting opportunities in particular areas than expecting different amounts from the real estate agents.