Are you interested in investing? Or you have some amounts of money, but not knowing what to do with it? In this article, we will discuss about the benefits of investing your money in real estate. Why in real estate? Well, there are many ways to invest your money, some people tend to invest their money in stocks or in bank savings, however one of the most popular ones is property investment. It seems that property offers you more security and more benefits than almost any other investment. However is that right? Does property investment really offer you better investment opportunities than others? Do not easily believe with what mostly people say without checking it for yourself first.
Here are some reasons why you should invest your money in real estate :
- Low risk
All kind of investment has their own risks, however, as it is stated before that it is still more safer to invest in property rather than in other financial instrument investment, since you can manage it by yourself. The only risks that may happen is the building gets damaged or the rent is paid late and therefore putting stress on your cashflow.
- Gain more leverage
Since it is not easy for you to use the bank’s money for property investment, the ability to make a down payment, leverage your capital, and thus increase your overall return on investment is incredible.
- Grow, tax-free
One should consider that buying rental property because of its value speculation is a dangerous strategy, since cash flow is the pivot point. However, appreciation over the long-run is certainly realistic and at least you should be considering a tax deferred strategy. For your further references, you may even consider a, charitable trust, or an installment sale to lessen your tax liability further.
- Tax free cash flow
Because there will be depreciation and mortgage interest deductions, then your cash flow should be tax free. Mostly an investor will never pay taxes for their cash flow and get their capital gains on the sale of the property.
- Increased tax deduction strategies
Rental property makes it possible for investors to have the incredible opportunity to convert personal expenses to potentially valid business deductions, as rental real estate is a business. So, expenses that you have spent for, such as travel expenses to check your properties and payments to persons who manage your properties can be deductible and increase the tax benefits when it comes to cash flow and the future sale of the property.
- Rental real estate supports your early retirement plan
This helped people who are terrible savers and have a lack of discipline at putting their monthly deposit. By buying a rental property, it urges you to commit and maintain. You will always be grateful in the long term if you keep disciplined payments into it and build your own future cash flow and wealth.
There are many people who are already successful in property investment, and almost every one of them has taken profits from their business over the years to invest in rental property. Is it an interesting investment for you? Maybe you can be one of those lucky people. Do you want to try?