Why You Should Put Your Money in Real Estate In 2020
If you want to be sure of a steady flow of income, you should invest your money. Most people are looking for the most suitable areas of investing that guarantees huge returns with fewer risks. After gathering enough financial resources, you should look for means of doubling your money and one of the investment ideas that you should think of real estate. The demand for both commercial and residential property is high and that what makes real estate investing a good idea. Real estate stands out among other investment ideas such as stocks and bonds as it is a unique product because of its size and location. A majority of people find it hard to put their money into the market, but with the benefits that you are likely to realize from real estate investing, you should give it a second thought. By reading the article herein, you will learn why real estate investing is an excellent idea in 2020.
Future appreciation is one of the important reasons why you should consider real estate investing. According to research, real estate has an average appreciation rate of 5.4 percent which is far more than that of stock and bond investment. Moreover, you will get to enjoy the returns for several years. Therefore, if you want to be sure of a constant increase in revenues from your investment, you should consider real estate investing.
Real estate has a high leverage value. This means that you can use it as collateral in securing loans from banks. Securing a loan is usually a good source of funds if you have other investment ideas. As long as you can prove to the bank that you are responsible with your finances, you will be sure of getting a loan. Besides, in real estate, you can manipulate the value of the property upwards. As soon as your purchase real estate property, you can make changes that will improve the market value through additions and remodeling. When it comes to stocks and bonds, you cannot improve the value as they are plain assets.
As a real estate investor, you will enjoy tax benefits. If you buy or sell a property, you will insure capital gain taxes. Moreover, you will have the chance to take advantage of certain federal tax deductions such as maintenance costs and property upkeep. Finally, real estate investing helps on build equity. As you know, equity is calculated by subtracting the amount you own on a property from the value.
After reading this compelling reasons, you have no choice but to put your money in the real estate market now. Nonetheless, know your financial position first to avoid making a mistake that might be costly in the end.