Of all the choices for where to put your money, you may ask yourself, “Why should I invest in real estate?” There are many advantages to investing in real estate as opposed to other ventures. Here are a few reasons to consider real estate a wise investment.
- There are great tax benefits. Long-term appreciation is likely for most properties, if you do your homework before buying. Appreciation in value is a way to grow your money, tax-free. Also, if you rent a property out, there is often no tax liability on your cash flow because of depreciation and mortgage interest deductions. Have a trustworthy CPA on your side who can advise you on all the benefits of real estate investment.
- There are more ways to receive a return on your investment. Renting a property to a tenant can provide immediate cash flow. As stated before, more real estate appreciates over time. Inflation can actually give you a better cash flow, as rent value may increase over time, but your mortgage payment will remain the same on a fixed rate mortgage. Or if you paid cash for the property, you will have more and more cash flow from renting over time.
- Buying through Shade Tree Cash Deals often allows you to purchase below market value, making your investment already profitable.
When it comes to investments, it all comes down to the return you will get on your money. When researched and carefully planned, real estate investments can sometimes offer the greatest return on the dollar. Therefore, if you are asking yourself, “Why should I invest in real estate?” when presented with your options for investment, consider these things to help you make the smartest decision.