In 21st century, investment is the word that is changing the world. Investment is the thing that is creating millionaires overnight. There are different forms of investments but there are some that are showing a rapid trend. Among them is real estate investment. Real estate investment has been dubbed the king of investment by experts due to its high rate of return and a low exposure. Well, without tangible facts, I cannot convince you why real estate investment is worth this much buzz. So here are some tangible facts that will make you understand the buzz around real estate investment.
Increase in GDP growth leads to increase in demand for real estate. It is in relation to this, that real estate helps in hedging inflation. Growth in economies means that there is more disposable income for the residents. Real estates come in handy to help control inflation by offering people property in exchange for disposable income.
1. Retirement Income:
Real estates offer a steady and assured income flow. The current economy does not offer you an opportunity to save. Actually with bills increasing every month it is impossible for you to save much. However, with real estate, you are assured of a steady flow of income after retirement. Moreover, with real estate you do not have to foot bills like in other investments.
2. Positive Case Flow:
The aim of an investment is to have a steady and positive return. Also bear in mind that you want to get back more than what you invested. Real estate is one of the few investments where you are assured of a positive cash flow. Rents are hiking every other year, and you too are assured to have your rents hike if you are putting up your property on rent.
3. Scope of Appreciation:
Wouldn’t you love a business where your property is assured of gaining value? Well, in real estate, land rates are always on the increase. Then increase in land rates and economic growth means that rents too will increase. Thereby increasing your earnings.
4. Tax Benefits:
Taxes are a necessary evil. Taxes are the government’s main source of revenue and real investments are a major contributor to GDP. Real estates will however give you a tax benefit as there a man ways to enjoy tax exemption. The government is also considerate on real estate construction to help reduce congestion, and thus does not place bottle-neck taxes on investors.
Leverage is the capability of using borrowed loan to make an investment and ensure assured returns on investment. With real estate, you can contribute about 20% of the investment and fund the rest 80% by a home loan. This way, you will be assured of return on investment and pay off the home loan.
6. Diversification Of Investment Portfolios:
Diversifying your investments is one way of reducing risks in your business empire. Real estate business is an independent business that can produce enough funds to pay off its debts and support other businesses. Diversifying your investment by venturing into real estate will help you reduce the chances of your business facing financial risks.
With the above benefits, you can now understand why real estate investment has been christened the king of investment. The ability to provide assured positive return on investment makes it a mouth-watering investment idea