“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world,” said Franklin D. Roosevelt. Not much has changed since the words were first uttered, and real estate continues to remain a brilliant way to invest and save money. Passive income is gaining traction in today’s fast-paced world and individuals are looking for ways to increase their income in methods that are mid-way between the risky share market and the stable yet low return banking deposits.
Listed below are some of the best reasons to invest in real estate to earn supplement income.
Real estate investment continues to be a stable and enriching method of earning passive income. A key feature of real estate investment is the significant proportion of total return from rent over the long term. Increasing demand for accommodation in the country coupled with a need for trustworthy realtors creates the perfect environment to lease your investment for gains. Passive income continues to be a reliable method of either earning some extra cash or saving up for a richer future.
Any good investor will present to you the idea of diversifying your funds to diverse assets in order to retain some amount of safety over your investments. You can strive to reduce the overall risk of your portfolio by allocating some funds to the significantly low-risk yet if invested well, a high-return market that is real estate. Most importantly, it is a steady source of income that you can depend on.
Unlike investing in the share market or mutual funds, investment in real estate will yield returns almost immediately. Depending on the type of real estate investment and the method, you could receive your first rent check at the end of the first month. In addition, there is a great amount of long-term appreciation in real estate due to the constant demand for land and accommodation.
Getting into the world of real estate investment is not as difficult as it might seem. Rather beginner friendly, there are many financing options available and taking advantage of them can yield impressive results. In most markets, real estate appreciates over time and allows the investor to stay in the game longer in order to make the most of the investment.
Real estate investors enjoy tax deductions that are otherwise inaccessible. Some of the major sections of the Income-Tax Act that cover tax gains under house property are Section 80 C, Section 24 B, and Section 80 EE. Invariably, the money saved through tax deductions is a motivating factor for individuals looking to slice a piece of the real estate cake.
The asset value of real estate is not only considerably safer from risk, but also increases over time. The longer you have invested in real estate, the greater your gains. Even considering previous housing market disturbances, the real estate business has always recovered and continued to grow despite any hurdles. It promises to provide you with endless returns.
For those reasons and many more, the world of real estate is lucrative and enriching. Any investor, beginner or veteran, can derive a great appreciation for the field of investing through real estate. In the words of Andrew Carnegie, “Ninety per cent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”