David Lader’s Top 5 Reasons For Real Estate Investment
5) Reliability of Returns
Although it may be tempting to go for an investment with a chance of returning a huge amount of profit (i.e. stocks or bonds), these types of investments also come with a substantial risk of losing value. One of the best upsides of a real estate investment is that they can provide a steady, reliable return over the course of many years.
There are many deductions that can be taken when tax time comes around as a result of a real estate investment. For example, any of the following are valid deductions: repairs and maintenance; home insurance; listing and agent fees; and travel time to perform repairs. Interest on mortgage payments is also deductible on properties which produce income.
3) Many Recent Foreclosures
It’s no secret that the recent fluctuations in the housing market have resulted in a high rate of foreclosures. This means that it is now an optimal time for investors to purchase properties, and it also means that there are many more renters on the market than in previous years.
2) Long-Term Investments are a Great Idea
While the initial cost may be substantial, investing in real estate can provide you with consistent income for a long period of time. In fact, many people use real estate investments to fund their retirements or long-term savings goals. If you can “weather” the up-front cost, you may find yourself in a great financial position years down the road.
1) Visible and Tangible Investment
One problem many people find with investing in stocks is that their investment is just a number on a screen. They watch it tick up or down, and they don’t have any control over the outcome. With a real estate investment, you have far more control over your investment, how it develops, and how much return you see from it.
Overall, real estate is often a very sound investment which offers many benefits over other types of investments. Many find there is less risk with real estate, and many believe that it is a more active and long-term way to turn their money into regular profit.