5 Reasons why real estate is a great investment

1- Real estate provides better returns than the stock market without much volatility.

Historically in real estate, the risk of loss is minimized by the length of time you hold your property. When the market improves, so does the value of your home, and as a result, equity piles up. Risks never change in the stock market and there are many factors beyond your control that can negatively affect your investment. Real estate gives you more control over your investment because your property is a tangible asset that you can tap to take advantage of many revenue streams while enjoying capital appreciation.

2- Real estate has a high tangible asset value.

There will always be value in your land and your home. Other investments can leave you with little or no tangible asset value such as stocks that can go down to zero, or a new car that depreciates over time. Homeowners insurance will protect your investment in real estate, so make sure you have the best policy available so that your assets are protected in the worst case scenario.

3- Real estate values ​​will always increase over time.

History continues to prove that the longer you own a property, the more money you will make. The housing market has always recovered from previous bubbles that caused home values ​​to plummet, and for those who held onto their investments during those turbulent times, prices have returned to normal, and the rally is back on track. Now, real estate investors in the best-performing markets are enjoying windfall gains. In fact, in the past year every state in the country has had positive reviews, and some of my clients in the Los Angeles market have made millions of dollars in less than a year of flipping.

4- Investing in real estate can also diversify your portfolio.

If you have ever talked to a financial planner about investing, you know the importance of diversification. When you diversify your portfolio, you spread the risk. Real estate will always act as a safe tangible asset to reduce the risk in your portfolio. Many of them amassed a fortune by investing only in real estate.

5- Last but not least, real estate investing has many tax advantages.

You can get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and costs, property taxes, insurance and depreciation (even if the value of property gains) and other benefits. The end of the year is a hectic time for real estate because people want to take advantage of the many tax benefits before the end of the year!

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