Even though real estate I pricey, it is a great investment option. Paying for a house upfront may have its advantages but not everyone can afford that kind of purchase. Real estate investment can be in form of housing, land, apartments, 0office buildings, storage spaces and other brilliant ideas. The trick about real estate investment is about maintaining the property to produce as much income as possible and appreciate in value as well. For beginners, you should start your real estate investment small and work your way up once you get the hang of it.
Here are some of the benefits of real estate investment
You are guaranteed a steady monthly income
Commercial real estate property guarantees you a steady monthly income. The location and type of real estate play a big part in determining the amount of profit you receive. You can use the money you earn from your property to cover all the incurred expenses plus the mortgage and still have some money left to save. For real estate properties like apartments, office buildings and retail shops, setting up near urban areas can be more beneficial. You can use the extra income from your real estate property to build other businesses, save for new real estate property of for recreational purposes.
Real estate owners can get tax exemption benefits. When you own certain real estate property, you can get tax exemptions from the government. The money received from rental real estate properties is not subject to any self employment tax. This means that all the money you earn from your real estate property is entirely your own. You can also get tax breaks from travel expenses, insurance, some legal fees, property depreciation and property taxes.
If you won rental property, you can use the income you receive to cover all the mortgage payments. This means that the tenants are the ones clearing the mortgage payments; you can use the income from your job for other purposes and commitments. the early mortgage payments will increase your credit score; which increases the chances of getting bigger and better loans from mortgage brokers and banks.
With real estate, you have financial security which can sustain you in the long run. The real estate rewards will run for a long period of time as long as you maintain your property well. You can supplement your life insurance policy and retirement benefits with the income you get from the real estate.
Real estate can generate your wealth through property appreciating in value. With time, most real estate property will increase in value. the value in the market appreciates and depreciates constantly but a few years into the market is enough to increase your property’s value. unlike most loans, mortgages have a fixed interest payment which favours the real estate owner when the values of home appreciate. You can use this opportunity to increase the rents while paying the same amount in mortgage payments.
As a real estate owner, you are your own boss. You have the authority to make your own decisions, choose your investments, choose your partners and make all the decisions.