Real estate investment has proven itself again and again as a way to build wealth.6 Benefits of Real Estate Investing Click To Tweet
Given below are the benefits of property investing.
- Benefit 1 – Good Returns
Typically in an average market, most real estate investors will see an annual return of between 8 to 10 percent. This steady incline in property values is often a lot better than what you’ll earn with a money market or standard savings program.
- Benefit 2 – Fairly Easy
Almost anyone can get into the property market at some price point, even if you only have modest means
- Benefit 3 – It Provides Leverage
Leverage is being able to use credit to finance the purchase or development of a property investment. Because property can be used as collateral, you’re able to invest in something without putting up all the cash yourself.
- Benefit 4 – It Appreciates Over the Long Term
Real estate will appreciate over the long term, and do so consistently. Unlike a tech stock or a hot mutual fund, a real estate investment will continue to appreciate.
- Benefit 5 – Stability
Unlike a sometimes risky stock investment that may yield high returns initially but drop like a rock later, real estate is often a sound and stable investment. Overall, real estate is slow to fall and slow to rise, meaning with patience – you will make money.
- Benefit 6 – Tax Benefits
Setting yourself up as a property investor means you can claim or deduct expenses like property improvement or upkeep to offset your investment income.