Top Reasons Why Real Estate Is Still The Best Investment
July 6, 2020
Real estate is indeed the best investment nowadays and millionaires are not just the only people saying it is so. Even marketing and business experts say that real estate is the best investment right now.
Here are some of the answers that could help sway your mind to invest in real estate.
There is an ANTICIPATED CASH FLOW in REAL ESTATE
One of the most valuable advantages of real estate is its steady and predictable cash flow. You will be able to earn money without the need to do much of a work. From your rental properties, you can already anticipate the income you’ll be able to get per month. Because you already have an idea of how much money you’ll get, it’s easy for you to budget everything in hand. It’s easy to compute the monthly cash flow.
How To Compute: Cash Flow = Gross Rental Income – all expenses and cash reserves
Expenses and cash reserves may include mortgages, vacancy reserves, repair reserves, maintenance, and utilities. If you want to see a more transparent computation of your cash flow, you can check Cloudhouse— a new rental property ROI calculator by Roofstock.
Great VALUE APPRECIATION
In contrast to other assets such as vehicles, gadgets, electronic appliances, and furniture, real estate properties have a high-value appreciation. In other words, the value of the properties increases as time goes by. As the city continues to progress, so is the value of the land and properties situated in it. Location, accessibility, and the overall economy are some of the few factors that influence the value appreciation of the property.
LEVERAGE in REAL ESTATE is HIGHLY possible to understand what it means, we need to know what leverage real estate first.
It is borrowing money from lenders to buy a property. Leverage is advantageous, especially if you don't have enough means to purchase a real estate property. Furthermore, you can also maximize your return on investment without spending too much from your pocket. Since the money lenders typically approve a loan for property investment depending on the income returns, many set certain conditions to secure their financing. Many lenders allow loans for property investment because they can have that assurance that the money borrowed will be paid. Some lenders also allow property investors to loan money for one property or more.
You can UPGRADE your PROPERTY
Because of the solid materials used to build your property, you can continuously develop it and increase its value. The better you do with your upgrading, the higher appreciation it gets.
TAX is DEDUCTIBLE in REAL ESTATE
Tax codes that allow numerous deductions for the reasonable expenses incurred in owning real estates, such as property expenditure, maintenance, improvements, and even the interest paid on the mortgage. The deductions can offset income and reduce your overall taxes.
There are more benefits that you can have in investing in real estate. If assessed and planned correctly, you’ll be able to build wealth enough for a lifetime. Let Aeon Luxe Properties assist you in making your dreams through REAL ESTATE investment. If you need more information, feel free to contact us. What are you waiting for? Don’t miss this opportunity! Invest now!