Real estate is one of the safest investment options which is available all over the world. Many people avoid real estate investments because they think it is way too much complicated and requires a lot of money. However, with proper knowledge and guidance, anyone could master this field and make a profitable gain from the investment. Today everyone needs a place of their own and investing in real estate solves this problem as well as secures the future. Prestige Park Grove Whitefield is a good investment for those looking to rent out their apartment.
The following are the reasons why real estate is considered a good investment.
When you invest in real estate, you are investing in a tangible asset that provides income each and every month. The appreciation value of a property increases with time hence it is considered a valuable asset. You can get a profit of more than your initial investment as this can be guaranteed while you are investing in real estate. On an average rate, the value of a property increases naturally between 3% – 5% per annum. This indicates that you can make money just by maintaining the property without giving it out for rent or by doing anything.
Real estate is a stable investment option and thus it is more popular among the investors. Unlike stocks and other derivatives, real estate the value of a property does not tend to fluctuate. Thus, this is one of the safest investment option available all over the world. With the growing population and the limited availability of land, the value of the property is always rising up. Thus, a profitable return could be expected in the future, if you ever wish to sell your property.
Great Passive Income
It is easy to generate a passive income by investing in a real estate. You do not have to put in a lot of hours or work hard. You can simply purchase a property and rent them out, others can use your property and pay the mortgage and other bills. You can earn a decent amount of rental income every month and concentrate on other works which can be your major paying jobs or take care of your family.
Safest and Risk Free Investment
Compared to other investment options available in the market, real estate is considered to be a very safest investment. It is mainly because it is a tangible asset. You are able to see and touch your property, which makes it less risky than investing in stocks and other derivatives through which you do not have a connection to your asset. Real estate does not require any excellent skills, anyone can invest in real estate by a proper understanding of the market and build their portfolio. Sometimes, there could be a temporary setback but it could be solved.
Anyone Can Invest in Real Estate
Investing in real estate do not require any special skill. Even if you are a first time investor, with proper understanding of the real estate market and by studying it properly you can master in this field. If you get early into this field, you will fetch huge benefits in the long run. Also, you can provide for the coming generations.
Tax deductions on real estate can offset income and reduce overall taxes. There is no self employment tax on rental income. At the same time, the government offers tax breaks from property depreciation, insurance, maintenance and repair expenses, legal fees and even interest paid on a mortgage. Real estate investors get lower tax rates for their long term investments. Reasonable costs of owning, operating and managing property are easily deductible.
A very significant benefit of real estate is the ability to use leverage by investing just a small portion of one’s own money and borrowing the rest of the money to buy a property. If you come up with a down payment from your savings and acquire a housing loan to cover the rest of the cost of the property, you can invest in real estate for a small percentage of the total price. Thus, only a small fraction of your money is invested in the property, but you still get to be the owner of the property. It also makes sure that you haven’t invested your entire earnings into a property thus, saving for any emergencies.