Cultivating Growth

7 Reasons Why I Love Real Estate Investing

Over the years, I’ve become quite passionate about promoting real-estate investing. I think it is a powerful tool that can enable people to do amazing things! In this post I wanted to drill down into the particular reasons I believe it to be so powerful.

I love real estate

In the recent years, the real estate sector has grown by tremendous margins as more and more people have dived into the sector. This could be due to a number or reasons, but primarily because people have so much more access to information about how to navigate the industry and as this investment strategy has become more popular people are able to hear first hand accounts of the returns their friends and acquaintances have seen in their real estate investments.

“Real estate is a great investment for many reasons. You can enjoy an excellent rate of returns, amazing tax benefits and leverage real estate to build wealth”. — James Harris, Bond Street Partners, Co-Founder

5 Reasons Why Real Estate Is a Great Investment – www.entrepreneur.com/amphtml/304860/

1. Appreciation factor
Real estate is a form of investment that is bound to appreciate in the future, making it the best form of long-term investment. Capital assets, which are land in this case, will cost more in 20 years than it is costing now. This is a guarantee that when you choose real estate for long term returns, you are bound to get your returns as land will never depreciate in value.

2. Steady flow of income
Another factor that makes investing in real estate a great option is the steady flow of income that you will get. This is however dependent on the location that you choose. When making a decision on the property to invest in, make sure that the property is located in a prime location where you will get tenants all year round. This will guarantee you a secure flow of income to cover your expenses and even help you grow and invest in multiple real estate projects. Properties that are located in urban areas will give you more returns due to the high demand.

3. Shield against inflation
When inflation hits a country, most sectors suffer huge losses. The real estate sector is however not affected by inflation. because as inflation increases, the value of your property will also increase. The income that you get from renting out the property will also increase significantly. Consequently, when the cost of living in a country goes up, a real estate investor will enjoy an increase in their cash flows.

4. Tax benefits
There is a huge difference between taxing real estate properties and other businesses. Real estate investors enjoy huge tax benefits. To begin with, real estate properties do not have to pay self-employment tax, making it a more lucrative investment choice than investing in a business. Real estate investors also enjoy low tax rates for the profits that they make in the long term as well as other tax benefits like depreciation.

5. Mortgage payment benefits
If you purchase a real estate property on mortgage, you do not have to pay the mortgage payments, as the rental payment will be used to pay off your mortgage and even leave you some money on the side for your other expenses. After the mortgage is paid off, you will have a rental property that is yours and one that has appreciated. You can then continue renting it out or you may even sell it to earn significant profits.

6. You are your own boss
When you choose to become a real estate investor, you will have total control over your investment. You will have the opportunity of choosing the type of property that you want research and look for it. When making a decision, you will also make one that is most aligned to your long-term and short term needs. A decision of when to sell off your property is also yours and you will not have to consult anyone else. This makes real estate investing the best type of investment.

7. Long term security
If you are looking for a type of investment that will give you financial security now and in the future, then real estate is your best bet. Unlike other investments, you are assured that the value for your property is not going to reduce but increase in the future. It gives you a steady flow of income based on your location and advertisements. It is also a market that is not risky and you can be assured of having something that will yield you returns over time. Financial security will also be guaranteed during inflation when you can be assured of not losing value and revenues.

The real estate sector is rapidly growing which is why many investors are diving into this sector to reap the benefits. It does not have to be expensive to go into real estate as you can take a mortgage that you will not necessarily have to pay for. Once you rent out the property, the tenant will be paying off the mortgage for you. The returns are also relatively high depending on location and it is not a risky venture. With a real estate investment, you are assured of long term and short term financial security.

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Sources:

  • 5 Reasons Why Real Estate Is a Great Investment – www.entrepreneur.com/amphtml/304860/
  • Reasons to Invest in Real Estate vs. Stocks, Maldonado and Boykin, 2019 – www.forbes.com/sites/camilomaldonado/2019/07/11/more-real-estate-investment-options-than-ever/amp/

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Bob Walton

Broker/Advisor/Realtor® WHAT BOB DOES IN 20 WORDS OR LESS “I deliver quality below-market valued properties to investors who want to grow their RALEIGH AREA investment portfolios… on demand.” Bob allows you to focus on expanding your portfolio INSTEAD of searching & negotiating. Bob understands that buying or selling a home, business space, land development or home flip opportunity is more than just a transaction: it’s a life-changing experience. That’s his team of highly-seasoned real estate professionals is dedicated to providing exceptional, personalized service for all of our clients.

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