It’s been said so many times it practically turned into a cliché, but it’s true nonetheless – it’s always a good idea to invest in real estate. We know, the market is a bit unsteady and strange right now, no matter where you are. Things are turning, times are changing. And the barrier to entry is a bit steeper, a bit higher. But, we still recommend you invest in real estate. If you don’t believe us, then read the article below to find out exactly why.
Tangible asset value
Owning real estate is, well, real. You have real assets that you can touch, feel, modify. Stock can plummet, cars break down, and cash can get stolen. But your land, or your apartment, or your house, are always there. As long as you get proper insurance, it is probably the safest and steadiest investment you can make. Furthermore, you will want to always invest and fix the place up. This essentially means that you convert your money into something much more tangible, i.e. the physical improvement of this real estate. As long as you can afford it, you won’t go wrong.
It’s value constantly increases
As long as you take proper care of your real estate, it will increase in value with each passing year. Sure, the market can shift and turn, but the housing market has always bounced back. People can go without the latest car, or the newest gadget, but they will always need a place to live.
Furthermore, investing in your property is always a good idea. Fixing the place up, replacing bathroom tiles, getting new appliances, and working on the backyard. All this, and much more, will make the place a nicer target and option for renters. And even if you decide to sell the property, alone or with a help of a good agent, a couple of years down the road, you will essentially get back all the money that you put into it.
Finally, if you smart and choose a good location, the market may actually increase its price for you. Since real-estate investments should always be looked at like a long-term venture, patience is key here. Down the line, the place where your real estate is located in may get gentrified. Who knows, a new start up or big company may open up near it. Artists or entrepreneurs may show up in and around the area. This will do wonders for its value and price. In fact, its value can increase exponentially if all the right circumstances and conditions are met.
The tax benefits
Now, we need to begin this section with a caveat. Namely, tax benefits vary and differ greatly from place to place and country to country. So this means that, depending on where you’re reading this form, some rules may not apply. However, at the same time, it’s a known fact that any government worth its salt will want to support and help out real estate investors.
There is a tax deduction on a myriad of things. You will get more beneficial tax deductions on cash flows that come from your real estate, deductions on mortgage interest, operating costs and expenses, more lenient tax requirements on your properties…
And if you can’t keep track of all of this, get a tax depreciation report made by a qualified company or agency. There is no shame in asking for advice – in fact, it’s warmly recommended. You should have all your bases covered since you’re investing a large amount of money into something like this.
The more you hold onto a piece of real estate, the greater the returns. The risk of any kind of loss is reduced greatly the more you have it. This is especially beneficial if the market grows and gets healthier. Over time, you build more and more equity, since it doesn’t really depreciate. Because your real estate is a very tangible asset, you will get a lot of leverage for other things. It will also do wonders for your credit rating.
By renting out the place, you can have a safe and steady source of income. In a decade or two, it will actually pay for itself. Then all you are left with is pure, tangible, capital. And of course, you also get a nice summer vacation home, a little get away from your regular old life. Finally, if push comes to shove, you can always sell it. It’s essentially better than almost any other retirement plant.
For years people have had much success when investing in real estate, and with good reason. You get great returns from your renting income, and it does wonders for your credit rating. It’s also a great failsafe that you can sell at any time if any financial issues arise. Its value always grows and is a safe and stable tangible asset. And not to mention the myriad of tax benefits that get latched onto it.