Wednesday, July 12, 2017

REAL ESTATE INVESTMENT: the benefits of investing in real estate

Real estate investment is one of many investments that everybody want to go into. If many investment schemes are compared with one another, it would be found out that investing in real estate definitely ranks very high. Real estate investment is able to produce a lot of stress free income for the investor.

Below, I am going to discuss the benefits of investing in real estate.

1. Long term appreciation.

Technically, real estate is one of few investments that does not depreciate. This means that the value of a property or land does not decrease in value. What it does is that it increases in value year in, year out. Only an easily avoidable mistake would make an investor loose in real estate investment.

2. Passive cash flow.

Investing in real estate leads to passive and residual income. This income comes in the form of rents and leases, or even outright sales. You don't have to work yourself up over your investments, and you could engage a team to manage your estates for you. You just invest and see the money coming in stress free.

3. Tax advantages.

The tax advantages you get when you invest in real estate are just too numerous. Your property usually would increase in value, but it doesn't mean you pay tax on this increase in value. Infact, you don't pay tax on profits until you sell your property. You could even roll over your profits into another property and avoid paying tax altogether

4. Ability to increase rents and leases over time.

In the long term, real estate investment gives you the ability to increase your rents and leases, even faster than the rate of your expenses on the property. Even though your profits are subject to income tax, it would still rise comfortably.

5. Fulfilling professional career.

Investing in real estate is a career that is almost unequalled, in terms of the massive gains that could come from it. Real estate investors are usually among the highest paid across every industry and profession anywhere in the world.

Real estate investment is the rave of the moment, and next time you think about how to invest your money, investing in real estate is a decision you are highly unlikely to regret. If you have enjoyed this post, please share. Thanks.

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