Investing in real estate has been a thing for some years now, according to a research by Gallup Poll in 2016, real estate was rated as the best long term investment ahead of gold, stocks and bonds. Everyone wants to own a property or two and the satisfaction of owning your property is stronger than owning gold or stocks.
You may be wondering and comparing investing in real estate with other investments you may have heard of. In this article, we will be highlighting some of the benefits of real estate investment and why you should venture into real estate.
Benefits of investing in real estate.
- Passive/steady income
- Financial security
- Tax advantages
- Appreciation
- Sole decision-maker
Passive/steady income: investing in real estate allows you to earn a passive income. A passive income is earned with little or no effort at all, it’s the income you acquire besides your regular job. A passive income can come either through rental properties (real estate) or a business. Investing in real estate not only allows you to earn passive income but also gives you a steady income.
For example, if you acquire a property and rent it out to tenants, annually you receive rent without putting effort, without working or actively participating in it.
Financial security: this is the prayer of almost everybody today, to have enough money to cover your expenses and still have extra cash at hand. Investing your money in real estate will guarantee you that, you do not need to worry about finances, seeing as you’ll be receiving payment almost all the time. The more you invest, the more income you receive. Steady income equals financial security.
Tax advantages: unlike other investments, today, investing in real estate will give you a tax advantage. For rental properties, be it for personal use or business purposes, is not subject to self-employment tax. The government also offers tax breaks for things like property depreciation, insurance, and property taxes. As a real estate investor, you’re also entitled to lower tax rates for long-term investments. The longer the property stays with you, the lower your tax.
Appreciation: unlike other investments, real estate is not a short-term investment plan the benefits of real estate investment include the appreciation of your capital assets like land. Instead of the value of your property depreciating, it appreciates which means the value of your property will be worth more in 20 to 30years from the time of investment, which is why it is your go-to place for long-term investment.
Sole decision-maker: this is one of the best parts of being a part of real estate, it gives you the chance to be your own boss just like any other business. Investing in real estate gives you complete control and autonomy over your investment, strategies as well as your losses and profits. You get to decide on what property to invest in, who your tenants will be, how much to charge for rent, who will manage and maintain the property and also rent payment duration, whether it will be monthly or annually. The advantage of investing in real estate is that it makes your own decision-maker.
These and lots more are benefits of being a part of real estate. We hope this was helpful
WRITTEN BY: LILIAN ELIJAH (JESNAIJA CONTENT CREATOR)
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