Reasons to Invest in Real Estate
Have you thought about investing in real estate? It’s a great way to earn passive income, and offers a greater ROI than many other investment options. There are many good reasons to invest in real estate…..watch the video below to learn 5 reasons why!
Real Estate almost always appreciates over time. (Key words being “over time”.) While your property value can go down during an economic downturn or recession, over time it will inevitably go back up. This is because land is a limited resource. It’s a tangible asset and there is only so much of it. (relatively speaking…ahem….Palm Island in Dubai doesn’t count!) People are always going to need a place to live, work and play.
In Case you’re wondering what Palm Island is….learn how they were made here!
The capital gains tax bracket is lower than the personal tax bracket, so this is another good reason to invest in real estate. AND, the taxes on capital gains are deferrable, so you can defer that tax payment when you sell and then buy another property.
A third reason to invest in real estate is that it allows you to build equity. You can then use that equity to purchase another property, make home improvements, or make other purchases. Learn more about home equity here and here.
Any time you make true improvements to property, you’ve added value. If you start with raw land and drill a well, build a road, do some clearing, or build a house, you’ve added value. If you start with an existing building and fix and flip it, build an addition, or remodel and update an older home, you’re increasing it’s worth. There are lots of ways to improve property and thereby increase it’s value, and in turn, your pocket book.
Last but not least, investing in real estate for the purpose of renting is a great way to earn passive income. This investment strategy offers a higher rate of return with a lower initial cost when compared to other investment options such as stocks and bonds. Owning rental properties creates cash flow and offers year round income.
Thanks for watching and reading! You can see more real estate vids on my YouTube channel!