FIVE REASONS WHY REAL ESTATE IS A SECTOR YOU SHOULD INVEST IN
Real estate has to do with property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water, immovable property of this nature, an interest vested in this (also) an item of real property, (more generally) buildings or housing in general. Real estate is a great investment for many reasons. You can enjoy an excellent rate of returns, amazing tax advantages and leverage on it to build your wealth. Although, real estate bring so much opportunities around but many still nurse the phobia of committing their money on the sector. However, the gains in the real estate market are quite enormous which one must leverage on. Here are the top five reasons why you should invest in real estate.
REAL ESTATE HAS A HIGH TANGIBLE ASSET VALUE.
There will always be value in your LAND and property. Other investments can leave you with little or no tangible asset value such as a stock which can dip to zero, or a new car which decreases in value over time. Home owners insurance will protect your investment in real estate; all you need do is to get the best policy available so your asset is protected against unforeseen circumstances.
REAL ESTATE PROVIDES BETTER RETURNS THAN THE STOCK MARKET WITHOUT AS MUCH VOLATILITY.
Historically in real estate, your risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity. The risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment. Real estate gives you more control of your investment because your property is a tangible and physical asset that you can leverage to capitalize on numerous revenue streams, while enjoying capital appreciation.
REAL ESTATE APPRECIATES OVER TIME.
History continues to prove that the longer you hold onto your real estate, the more money you will make. The housing market has always recovered from past bubbles that caused home appreciation to slip, and for those who held on to their investments during those uncertain times, prices have returned to normal and appreciation is back on track. Now, real estate investors in the top performing markets are enjoying a windfall. In fact, this past year, every state in the nation had a positive appreciation and some land or estate developers in the country, especially in Lagos made millions of naira from land or property sales.
AN INVESTMENT IN REAL ESTATE WILL ALSO DIVERSIFY YOUR PORTFOLIO.
If you’ve ever taken your time to speak to a financial planner about investing, then you should be aware of the importance of diversification. When you diversify your portfolio, you spread out the risk. Real estate will always serve as a safe tangible asset to minimize the risk in your portfolio. Many have amassed wealth and became big by solely investing in real estate.
INVESTING IN REAL ESTATE COMES WITH NUMEROUS TAX BENEFITS.
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 property gains value) and other benefits. The end of the year is a very busy time for real estate because people want to take advantage of the numerous tax benefits in that period. An investment in real estate is not only a safe financial investment, but also an investment that can provide years of happiness and priceless memories that will last a lifetime.