Financial advisors recommend investing as a good way of boosting income and attaining financial security. Most people are looking for the most suitable areas of investing that guarantees huge returns with fewer risks. According to the market trends, one of the most profitable ideas that you should consider today is real estate investing. The demand for both commercial and residential property is high and that what makes real estate investing a good idea. Apart from the profitability, you should know that real estate investing is unique as compared to stocks and bonds. Most people are usually hesitant to invest their money in real estate, but there are numerous compelling reasons why you should do it now. The article herein will help you understand why you should put your money in real estate in 2020.
Future appreciation is one of the important reasons why you should consider real estate investing. Research shows that real estate has a growth percentage rate of 5.4 which is way higher than in stock and bond investment. If you invest in real estate, you will yield a positive return over a long duration. Therefore, if you want to be sure of a constant increase in revenues from your investment, you should consider real estate investing.
Leverage value is one of the benefits that come with real estate investing. It, therefore, means that you can use it as an asset to secure loans from financial institutions. Securing a loan is usually a good source of funds if you have other investment ideas. The lender will not hesitate to offer a loan once you prove that you are financial responsibility. Additionally, real estate has improvement potentials. Once you buy the property, you can make changes that will positively affect the market value. This is not usually possible when it comes to bonds and stocks as they are plain assets.
Also, real estate investing guarantees valuable tax implications. If you buy or sell a property, you will insure capital gain taxes. Additionally, you will have the chance to enjoy 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.
Based on the above discussion, it is true to say that real estate is a good investment idea. However, the decision to put your money in the real estate market should be made after establishing your financial position.