Investing in Real Estate

Real estate investing has been highly favored. According to the Gallup poll, Americans are investing in real estate more than stocks, money, and gold. As shown, 35% of the Americans are investing in real estate, 21% in stock market, 17% in savings, and 16% in gold. It has been taken place over the last seven years which shows the power of real estate investing. The trend is expected to increase or at least remain the same in the next several years.

Real estate provides security. With the belief of strong security provided by real estate, Americans are not hesitant to invest in it. It is often believed that real cash can be spent at any given time while housing and land have both monetary and agricultural values. Housing value fluctuates upwardly, especially during challenging times while one can live on their land, make money with rentals and commercial deals as well growing and selling agricultural products.

Depreciation. All equipment and machinery to run agriculture on the land are tax-deductible. This help to save money in the long run.

Total income. Once the mortgage is paid off, one can rent out the property and generate an income while the tenants are paying for most of everything else (maintenance, property taxes, etc.) that is included in the rent. This is win for real estate owner as he/she would have a source of income perhaps for early retirement.

Appreciation. Property value fluctuates (usually increases) which would benefit the owner when he/she decided to sell it. There is usually a good profit when selling a property as the value is often higher than the original cost. People always see a positive trend when looking at future property value considering all good factors come into play such as location. Even if the value goes south, the property still belongs to the owner and there are still other earning potentials it.

Leverage. In real estate, you do not have to pay for the full cost of the property upfront, but the benefits are plentiful. There are build-up equity, tax deductions, appreciation, and probable rental income. All the benefits are for the owner to keep while just paying for what needed. The benefits and return on investment are even greater once the mortgage is paid off.

Topics: real estate investment

Work cited: Gallup, https://www.capablewealth.com/5-key-reasons-real-estate-investing-awesome/