More and more people are starting to turn their heads to real estate investment. Having diverse assets can bring financial freedom as well as enough support if ever one of your investment is in a bad shape. Real estate investment is a kind of asset that builds over time and usually used to "build wealth over the long- haul."
According to entrepreneur.com, there are 6 reasons why a person must consider investing in a real estate property.
1. Rental properties- if someone has an active rental property, monthly income is almost guaranteed. It is also a passive income which gives you more time to focus on other business or investing again in other real estate properties.
2. Rental property owners usually receive tax benefits as the government offers depreciation values and earning from your rental properties are not subjected to self- employment tax.
3. When a person invest or purchase a property through loan or mortgage, the tenant of the said property will be the one who actually pays the mortgage for you.
4. Property values only go up even during recession. These changes are not enough to lower the real estate values up to the point that the owner will have a bad investment. Again, real estate property only goes up over time.
5. Real estate property is a protection from inflation. When the price of everything is kicking higher and higher, so do the rents of the tenants but not the fixed-rate payment terms of the mortgage.
6. You have the over- all control as you'll be the one buying, selling or leasing your property. You don't have to panic if the competition goes higher as you can simply improve your promotional strategies. Also, if home value drops, you can just wait it out and let the values go up again.
According to huffintonpost.com, though real estate investing is a long- term business, you can still see the progress of your profits in a short period of time if you managed to do it right. There are also a lot of information and advice that are available to help you start and get you on board.
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