5 reasons to buy real estate

Monday, August 20, 2012

5 reasons to buy real estate

We all want to make money through our investments, but how do we choose the right investment for us? Well, seeing the world economies today, the best bet is investing in real estate. Many smart investors are those that model the successes of some of the leading businessmen. These days, you may notice that most millionaires of the world are ones that have substantial investments in real estate, so why bother thinking of other options like paper assets. There are quite a few advantages to buying real estate in any form nowadays. Whether you choose to buy a lavish villa, a condo, an empty lot or a modest apartment, following are some of the benefits in putting your money in the right place at the right time.

Alternate income source 

Whether you can afford to buy the property without taking up a loan from the bank or not, real estate is one investment that can give you an alternate mode of cash flow as soon as you possess it. There are many investors who select and buy small but well located properties at prime locations, spend a bit of money to make the properties feel comfortable and look stylish from inside and be in the best of conditions, and simply put it up for rent, or lease them out to earn a handsome parallel income. 

High earning opportunity 

In fact, if the property is located in a country that sees a lot of tourists and is located at a good spot in a popular city, the investor can earn almost twice as much as the monthly mortgage. In a sense the property pays for itself and allows your money to work for you rather than the other way around. Thus, rather than the size of the property, it is imperative to first consider the location and potential.

Tax savings 

A big advantage of investing in real estate is the depreciation of tax. After all, real estate is the most tax advantageous investment asset in most countries. The government permits tax deduction on property even with an increase in the property’s value. Also, in addition to depreciation, an investor can claim tax deduction on the interest accrued each month due to monthly mortgage payments. 

Pride of ownership 

No one can deny the number one benefit of owning a property; you can boast about it with pride. Pride of ownership is what drives us to buy real estate in the first place. Having a beautiful home to live in, or a lovely second home in a foreign country can be quite a status symbol for most of us. Plus, such investments, especially if done in foreign countries can give you a sense of stability and security. Even if the economy in your own country hits bad times in the coming future, you can be sure that your money is safe abroad and appreciating in value.

Taking advantage of possible booming industry 

There are some countries in the world where the real estate sector is booming. For example, the Dominican Republic real estate sector is witnessing a 15% annual appreciation rate even today. Now these are the places you must concentrate on. The country welcomes foreign investment and has laws that are a cake walk for any investor. Many countries also boast of a large number of reputable real estate agencies that are committed to getting you the finest property in your allocated budget. You can either check out property listings on Internet or simply get in touch with a real estate agency that can help you zero in on the property of your dreams.

About the author:

Jeff is a freelance writer and content builder of Gopunta Real Estate group.

No comments:

Related Posts Plugin for WordPress, Blogger...