Shelter has been a basic requirement of human life since the evolution of mankind. Our definition of shelter has been ever evolving since then – we moved from caves to temporary small houses to more solid structures to eventually the skyscrapers we occupy today. Our materials along with construction techniques have also advanced with each passing year. Real estate is a highly lucrative market with tons of latitude towards growth.
Why not invest in such a market?
Because we definitely would urge you to do so. Not only because we believe so, every line of investment requires a detailed groundwork and here are a few advantages.
· Steady Income – Real estate market lives on LOCATION, LOCATION and only LOCATION. The neighborhood you invest in defines the value of your property and also its return value. The level of urbanization in the area plays a key factor in determining the level of returns as well as the kind of lifestyle seen around. For example - Properties in areas that are closer to educational institutions provide a better chance at rental incomes. A steady stream of income in this kind of investments is in terms of rentals. Multiple investments in different areas helps you diversify your real estate portfolio as well as reap the benefit of a continuous cash flow.
· Long term financial Security – In cases of inflations – the investor never has anything to worry about, especially not cash flow. Rentals never cease to exist, not even during the toughest of times. The value of land and buildings are almost always appreciating – there is a minimal chance of any loss. So investing in real estate is the safest bet there can be!
· Tax benefits – The government offers a lot of tax exemptions to real estate investors. For example – rental income is not subject to self-employment taxes. Also the tax rates reduce over long term investments.
· Appreciation - Most investment values keep fluctuating which makes them a little unstable for long term investments; whereas real estate prices always increase over the years. Investors usually going in to a real estate investment know that they are in for the long haul and are going to reap major benefits.
· Easier to Understand – With real estate investments being very transparent, at face value and easy to understand in terms of paperwork.
· Your own decision maker – With multiple investments in various sectors of real estate, the returns are higher and reduce the need to work for daily expenditure. That helps in becoming more self sufficient and less reliant on other modes of income.