From a stable rate of return, appealing tax advantages and a step in building your wealth, Real Estate offers an appealing advantage. Here are 5 reasons why you should choose real estate:
- Not Volatile:
Property has historically proven to be the sound choice. Your risk of loss is minimized by the length of time you hold on to your real estate. Real estate gives you more control of your investment because your property is a tangible asset that you can leverage to capitalize on numerous revenue streams, while enjoying capital appreciation. Unlike other attractive investments, the risk under the property umbrella is minimized and helps you build longevity in your equity.
- High tangible asset value.
There will always be dependable value in your land, and value in your home. Other investments like stocks can leave you with little to no tangible asset value, or investments into a depreciating asset like a new car. Homeowners’ insurance will protect your investment and securing the best policy available so your asset is protected in any worst-case scenario is highly advised.
- Always on the rise.
History has and continues to prove that the longer you hold onto your real estate, the more money you make. The housing market has always recovered from past hurdles that caused home appreciation to slightly slip, and for those who held on to their investments during those uncertain times, prices have returned to normal, and appreciation is back on track.
- Diversify your portfolio.
If you’ve ever spoken to a financial planner about investing, then you are very aware of the importance of diversification. When you diversify your portfolio, you spread out the risk. Real estate will always serve as a safe long term asset to mitigate the risk in your portfolio. Many have amassed wealth by solely investing in real estate.
- 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 gains value) and other benefits. 937:1150576