Pages Navigation Menu

Grow Your Own, Be Sure

The Top 7 Benefits of Investing in the Real Estate Market

Investing in the real estate market has proven time and again to be one of the most effective ways for you to earn huge sums of money. Of course, you need to also know what you are doing and make use of as many resources as you can in order for you to navigate the market to the best of your advantage. Once you do, there is no doubt that you will be getting the many benefits of real estate investments in more ways than one. Here are the top 7 benefits of investing in the real estate market.

1. Good return: In a typical real estate market, investors are expected to make an annual return rate from 8% to 10%. This particular steady increase of property values is way better than the earnings you get from a standard savings program or a money market.

2. Easy start: One of the best things about making real estate investments is that there are no limits to the price points that you can begin with. This simply means that you can be part of the market even if you only have modest means. Though you may not immediately be able to buy a penthouse in a highly-populated city, you can begin making real estate investments even with just a small property in any rural area.

3. Provision of leverage: If you say leverage, you are referring to having the ability to use your credit to be able to finance the development or purchase of a property as investment. With properties capable of being used as collateral, you will be able to invest in something where you need not put up all the cash that you have saved.

4. Long-term appreciation: Real estate properties will appreciate in value in the long term. And this does not just happen once, appreciation will be happening on a regular basis. Clearly, this is far from having a hot mutual fund or a tech stock.

5. Stability: Investing in the real estate market is a stable and sound investment option. It is not like stock investments that may let you get high returns but in just a short time, could hit rock bottom. Generally, real estate is slow to rise and slow to fall. In simple terms, as long as you are patient, for sure, you will make money through it.

6. Tax benefits: If you become a property investor, you get the benefit of deducting or claiming expenses that involve the upkeep or improvement of your property to offset the income you make from your investment. You may also defer some of the income you make from your property investments using IRAs. You can also go with 1031 exchanges where you can take the income you make from selling a property and then invest it to another property within a certain time frame while not having to pay any taxes for any capital gains you make.

7. Rewarded sweat equity: Investing in real estate provides rewards to your sweat equity. This means that you can improve the value of your investment by replacing your hardware, painting your walls, and the like.