The resources available on this earth, whether that is an individual’s time or money, or the wealth in a government’s treasury or even real estate, are all limited by their very nature.
Making their best possible and most beneficial use is therefore, what everyone hopes to achieve.
The reasons below explain why investing in Real Estate is the king of all options.
Additional and Retirement Income
Buying an apartment or other form of real estate and flipping it or and renting it out is a common yet great way to generate a steady income. The fact is that as you become older, your financial commitments increase too. These can be for instance, car loans, medical bills, wedding expenditures of your children, or support for your dependents. Real estate investment provides a stable source of income, one that can cover you well into retirement.
Although saving money in a bank might sound like a good option, but people almost always end up withdrawing money at one point or another to fulfill some need of that hour. And before you know it, your year or even life worth of savings is gone in a second.
Investing in real estate instead frees you of this risk.
Scope of Increase in Value
Real estate is considered to be the safest form of investment as property values tend to always increase over a longer period of time. It can then be sold at a higher price leading to tidy profit. Even in cases where property values decreased due to an economic slump, land prices are known to be the fastest to recover. Real estate is hence, a king whose kingdom cannot be overthrown.
The thought alone of paying taxes makes everyone groan. Although it does not eliminate, real estate investment can at least reduce the pain associated with taxpaying. Since it is an important contributor to a country’s GDP, governments tend to provide relaxation to investors or holders of properties. In short, the taxes you pay on other forms of investment are usually higher than those you pay on property. Also loan interest and principal repayments against property are given tax breaks each year.
Investment Portfolio’s Diversification
Diversifying investment portfolios not just reduces the risk, but also increases returns. For instance, if a person invests in gold, then adding real estate investment to the portfolio secures and strengthens his investments even if gold prices fluctuate.
Enabling the Cycle of Economic Development
Apart from an individual, if governments also invest in real estate, it can eventually lead to economic development, benefiting the entire nation at large. By providing land for business operations, and developing the business infrastructure, it not just allows firms to operate effectively, but in the process, also generates employment opportunities for engineers, architects, surveyors and builders to name a few.
When people start earning, it will ultimately improve their standard of living. Moreover, if governments invest in real estate developments like hospitals, schools, parks etc, it further enhances the social well-being of its citizens.
These reasons are still only a highlight of the benefits of real estate investment. Above all, this investment grants the investor, the mental peace that comes with the knowledge of having a longstanding asset whose value will only increase with time.