The Benefits of Investing in Real Estate
Most of the people prefer investing in real estate because of the tax discounts. This is because property investors are always sidelined when it comes to paying tax in some countries while in other countries they pay very little. This is going to result into more revenue since there is less expenditure. Apart from that, they are also being rewarded by the government for having built houses to absorb the squatters. By doing that they are doing the government a big favor to help absorb the homeless. Compared to stock market that pays a lot of tax besides suffering from inflation.
Another benefit is that it appreciates in value. You will realize that a property can stand for over 10 years before it depreciates in value. You will be in a position to boost the value of your property by using simple maintenance practices. You find that if you paint the whole building with high quality paint will be enough to boost the value of your house. Apart from that, you can also fix the broken pipes, sinks, showers and even the kitchen cabinet. With this you would have improved the value of your house by some percentage.
In addition, it is also beneficial since they are in a better loan position. Most of the banks and other money lending institutions find it easy to give loans to real estate investors than those who invest in the stock market. This is because the property will never depreciate in value and it will always be there for several years. What makes it easy is that they can sell your house to get their money back. Take case when someone dies with loan on stock market getting the money will be hell of work.
In addition to that, real estate investment has low maintenance cost. One thing with real estate investment is that any maintenance practice undertaken must be compensated. To achieve this you will have to increase the house charges anytime you do major changes. Like when you paint the whole building using high quality paint you will have to increase the rent so that you can get your money back.
It is beneficial to invest in real estate because of the good returns. With real estate investment you will be in a position to get the money that you used in construction within a short period of time. It has the ability to bring good returns since the monthly charges for the property will never decrease at any point and you are sure of getting a certain amount of money at the end of the month. You cannot compare this to stock market which is always influenced by inflation.