Top Reasons to Invest in Real Estate in 2020
Financial advisors recommend investing as a good way of boosting income and attaining financial security. The decision to invest your money should be made after a thorough examination of the risks involved and the profitability. If you have money and not sure about the place to put it, you should consider real estate. The demand for both commercial and residential property is high and that what makes real estate investing a good idea. Apart from the profitability, you should know that real estate investing is unique as compared to stocks and bonds. Most people are usually hesitant to invest their money in real estate, but there are numerous compelling reasons why you should do it now. By reading the article herein, you will learn why real estate investing is an excellent idea in 2020.
One of the compelling aspects about real estate investing is guaranteed future appreciation. Research shows that real estate has a growth percentage rate of 5.4 which is way higher than in stock and bond investment. If you invest in real estate, you will yield a positive return over a long duration. As an investor who desires an increase in cash flow, you should put your money in the real estate market now.
Real estate has a high leverage value. It, therefore, means that you can use it as an asset to secure loans from financial institutions. The fact that you can get a loan means that you can boost your investment. The lender will not hesitate to offer a loan once you prove that you are financial responsibility. Additionally, real estate has improvement potentials. Once you buy the property, you can make changes that will positively affect the market value. Stocks and bonds are regarded as plain assets hence zero improvement potential.
There are numerous tax benefits that come with real estate investing. One of the tax implications is a capital gain tax which comes if your buy or sell a real estate property. Some of the other federal tax deductions that you will enjoy as a property owner include maintenance costs and property upkeep. Finally, real estate investing helps on build equity. The margin between the value of a property and what a person owns on a property is what is regarded as equity.
Based on the above discussion, it is true to say that real estate is a good investment idea. Nonetheless, know your financial position first to avoid making a mistake that might be costly in the end.