Real estate is a great investment for many reasons. You can enjoy an excellent rate of returns, amazing tax advantages and leverage real estate to build your wealth. Here are the reasons why real estate is a great and important investment.
1| Real estate provides better returns than the stock market without as much volatility
Historically in real estate, your risks of loss are minimized by the length of time you hold on to your property. When the market improves, so does the valued of your home, and as a result you build equity – the risk never changes in stock market and there are numerous factors beyond your control that can negatively impact your investment. Real estate gives you more control of your investment because your property is more tangible asset that you can leverage to capitalize on numerous revenue streams, while enjoying capital appreciation.
2| Real estate has a high tangible asset value
There will always be value in your land and value in your home. Other investments can leave you with little to no tangible asset value such as stock which can dip to zero, or a new car which decreases in value over time. Home owners insurance will protect your investment in real estate, so be true to get the best policy available so your asset is protected in the worst-case scenario.
3| Real estate values will increase over time
History continues to prove that the longer you hold onto your real estate, the more money you will make. The housing market has always recovered from past bubbles that caused home appreciation to slip, and for those who help on to their investments during those uncertain times, prices have returned to normal and appreciation is back on track. Now, real estate investors in the top performing markets are enjoying the windfall. The past year, every state in the nation had a positive appreciation.
4| Investment in real estate can also diversify your portfolio
If you have ever spoken to a financial planner about investing, then you are aware of the importance of diversification. When you diversify your portfolio, you spread out the risk. Real estate will always serve as a safe tangible asset to mitigate the risk in your portfolio. Many have amassed wealth by solely investing in real estate.
5| Real estate investment comes with numerous tax benefits
You can get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and costs, property taxes, insurance and depreciation even if the property gain value and other benefits. The end of the year is a very busy time for real estate because people want to take advantage of the numerous tax benefits before the end of the year.
An investment in real estate is not only a safe financial investment, it is also an investment that can provide years of fun, happiness and priceless memories that will last a lifetime.
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