Have you wanted to invest in property, but you’re not sure if it’s the right move? With so many investment opportunities, it can be hard to determine where to place your trust and what would be the best fit for you. One avenue you can consider is property – it may be daunting because property investments are of the long-term kind, and you don’t know what the future could hold. However, the truth is that real estate is some of the safest and most profitable investments you could make, and here are a few reasons why.
Value Appreciation
When investing in stocks or foreign currencies, you can never know precisely when the tables will turn, and your shares will plummet to the ground. However, with real estate, the value tends to appreciate more steadily each year. This is partly because of the increase in the population demanding more and more properties and driving existing properties’ value through the roof. Keep in mind that location is everything with real estate and that there are still risk involved, of course! According to the National Association of Real Estate, the average growth in the real estate market since 1968 has been around 5.4 percent, an impressive and steady upwards curve.
Reliable Income
Investing in property means you could have a reliable income by renting the property out. Millions of people are constantly looking for rentals, which means you won’t be falling short of renters anytime soon. Even if you don’t want to put in all the work yourself, you can always utilize property management services. Each year, the average rent also increases, which means you’ll be getting more from your property as time progresses. While your renters are basically paying the mortgage for you, your equity also increases, giving you even better chances of buying more property and increasing your investment while doing it.
Possibility to increase its value yourself
One of the most significant benefits of investing in real estate is that you have control over the property’s value. For example, suppose you’re looking at fixer-uppers to invest in, and you buy the fixer-upper for €100,000. In that case, after a year, and after using some elbow grease and bringing about a few renovations, your property could now be worth €150,000. This means you’ve increased the value of the investment yourself by improving it, which you cannot do with any other investment. Unfortunately, you cannot make the stocks go any higher, and you cannot cause the forex to shoot into the stars, but what you can do is invest in property and make its value appreciate by taking matters into your own hands.
Tax-deductible
When owning real estate, some tax codes allow a variety of deductions due to regular expenses undergone. Keep in mind that the details depend strongly on the country that you live in. These expenses can include maintenance of the property, any improvement or renovations carried out within the property, as well as the interest paid on your mortgage. All of these tax deductions could counteract your income and reduce your total taxes.
Taking the leap and investing in property can be a daunting challenge, but once you’ve overcome your doubts and decided to take the plunge, you definitely won’t ever regret it!
Additional resources
The following resources could be interesting when you are looking to start your real estate investing journey.
The Home Loan Expert – makes securing a loan a positive experience
How having multiple savings accounts can help you financially
Not to mention inflation hedge 😱