WHY INVESTING IN REAL ESTATE IS THE BEST CHOICE.

If you are good saver, and have money lying around then the best solution is to invest it instead of just keeping it the way it is. Well when you’re looking to invest your money there are many options to do so ranging from investing in stocks to buying bonds. Each of these comes with their own risk and their own return.

Some of the people would want to invest in buying stocks or mutual funds. Though the return for these can be really great but with the fluctuations in the market, there is no assurance with this investment.

There is another great way of investing money and getting great returns: Real Estate.

Investing in a real estate market allows you to have a stable investment with more certain returns.  A home is the most basic necessity of a human being. No matter what is the situation of the economy, people will always need a roof on their heads.

So, here we will tell you the benefits of investing in real estate.

1.       CASH FLOW: An investment done for the purpose of renting it out gives one the power of constant cash flow. For example if you have leased out your property for 2 years you have a guaranteed cash flow for at least 2 years. Rents never go down in fact they are increasing with every passing day.

2.       APPRECIATION: If your property is in good location and is maintained properly the value of it will definitely go up in a certain period of time. Different areas have different appreciation rates. But for sure the property’s value goes up steadily over the years.

3.       FEDERAL TAX BENEFITS: The federal tax benefit allows one to deduct a portion of their property value from their income. Depreciation is an income tax deduction that allows a taxpayer to recover the cost of wear and tear and deterioration on an annual basis. So, while the whole of invested property generates income, only a part of the value requires you to pay taxes.

4.       STABLITY: When you invest in stocks, it is very risky business/investment. If the market crashes so do you. One day you can be a billionaire and the next day you can lose everything but if you invest in a house/condo you are in a much better position. Even if the market crashes you still have your stable incoming cash flow from your rental property.

We agree that the returns in stock might make you rich in one day but with it comes a greater risk. With real estate you can have tenants, creating consistent cash flow.  If you want to sell your property then too you will make a profit especially if the property is in great condition with some renovations done to it.

Though the real estate market has its own ups and downs too it far more stable than other alternatives like stock, bonds, mutual funds etc. 

EDITOR: NEHA CHARAN