Top 10 benefits of real estate investment

Real Estate investment

To some extent we all know little bit of potential financial rewards that we can attain from real estate investing. There are many benefits of investing in real estate, whether you want to quit your 9 to 5 job or save up for your retirement becoming a full time real estate investor means you are on right path to fulfill your financial goals sooner than you might think.  Real estate market now in its best shape which means you can make good amount of money if you invest in right place. The economy is growing so do the housing market. There are an abundance of real estate opportunities to tap into across the country. 

In order to reap the financial rewards from investing you must make wise and calculated real estate investment decisions. There is no magic formula or just your luck that earns you money; it’s all about studying your potential investment before closing any deal. To become a successful real estate investor it is essential to know each and every thing about real estate , all the latest happenings and trends as well as benefits that you will gain in short and long term. Let’s have a look at these amazing 10 benefits of investing in real estate. 

1. Easy to Understand: Real estate investment can be easier to understand unlike complex investments developed by mathematics. Real estate investment involves the purchase of physical property which most people are familiar with but when you start investing, it can be difficult to understand each and everything in order to make a profit. Why? Because many investment types based on abstract concepts and complicated algorithms which are not easy to understand for fresher in the market.
2. Steady income: The number one reason why people prefer to invest in real estate is because of steady cash flow they earn in the form of rental income. This submissive income is a massive incentive to get you started and buy your first rental property. With good location you can earn a significant amount of money that covers your expenses and also make you some extra money on the side. The demand of urban cities with schools, colleges and universities are always high which means these areas tend to reap higher income. Your wise real estate investment secures you a steady flow of income for a long term.
3. Good chance of improvement: To relax their older days, some people feel safe to invest in stock market. They buy them and wait to sell it for a profit. Sounds but the success rate depends on the company management and their corporate success, which is out of your control. On the other hand there is something more profitable over which you have direct control, “a real estate investment”. It’s not in your power to control economic changes or demographics but you can control many things related to the physical property and tenants.
4. Tax benefits: Real estate investors get tax exemption from owning a rental property, one of the best benefits you can get by investing in real estate. Being entitled to lower tax rates for their long term investment is like icing on cake.  Moreover, the government endeavors tax breaks for property depreciation, maintenance repairs, insurance, travel expenses, property tax and legal fees.
5. Real estate is a Hedge against inflation: Real estate is one of the best and easiest ways to hedge an investment portfolio against inflation. Real estate is the only asset that reacts proportionately to inflation. Generally it is a good hedge against inflation; rental properties that are re-leased every year are especially effective since monthly rents can be adjusted upward in inflationary time.
6. Real estate can be leveraged and financed: By using debt you can purchase stock or other assets but this type of purchasing can be risky because the financing is not to purchase a hard asset. But in real estate market most of the products are usually purchase with debt. You can purchase any real estate investment with debt or hard money or a mortgage can be structure in more safer and affordable ways. This way an investor can made large purchase with a relatively small initial investment. The result is the buying of hard asset that appreciates year-over-year and paying for it primarily with other people’s money.
7. Real estate properties exist in an inefficient market: The real estate market is full of inefficiencies. Real estate investments have the potential for very high profits as there is a lack of transparency concerning to the individual property values and also the strength of different markets. If you are planning to be real estate investor, do some research with the help of industry expert and you will surely find a great real estate bargains.
8. Be a boss: Tired of 9 to 5 boring job? Real estate investment gives you a chance to become your own boss. You have complete control and autonomy over your real estate investment strategies as well as your success and failures. You have power to decide in which property you will invest, the tenants who will live under your roof, how much rent you charge and who will manage the property as whole. You are your own decision maker.
9. Can cover your mortgage payments: The income you get each month from your rental property is more than enough to cover your expenses, including your mortgage payments. In simple words, you tenants are the one paying your mortgage. So, it is important to keep your tenants happy!!
10. Long term financial security: Always try to see the bigger picture! Investing in real estate gives you long term financial security. Once you have steady flow of cash in succession, the rewards of investment bring on financial stability and security for a long term. Owning a rental property gives investor peace of mind and sense of security because of the property’s appreciation in value over time. This means the value of your property going to increase because land and buildings are appreciating assets.

Without any doubt, housing market is the lucrative business for many investors. People who recognize the advantages of investing in real estate market to reap financial rewards as well as financial security for a long time love to invest more and more. If you are looking to invest in real estate, head over to the Traditions at Chesterfield to find your next real estate investment.