Many of us wish to invest in real estate as it is an excellent way to yield passive income by building a diversified range of investments so that you can save better for your retirement life. There are certain reasons for experts to claim real estate to be the best form of investment, also they state real estate as the best money yielding strategy. Here you don’t need to invest much amount in down payment, rather you need to put 20% of your own money as initial investment and rest can be paid from the pay off of your tenant. For this reason, more and more people are looking for 1/2 bhk flat for sale in Bangalore and other metro cities. If you are still wondering whether the investment in real estate is worth the effort, then here are top 10 reasons for you to consider investing in real estate.
You create a solid asset by investing in a property. All the money you put into the property will yield you constant revenue in the form of rent from tenants. In case if you are in need of huge cash then you can consider selling the property. As long as you hold the property you can enjoy better asset value.
Easier to Leverage
If you are considering real estate as an investment strategy, then increasing your capital wealth is pretty easier. You can pay off the majority portion of the asset from the money you receive from tenants as rent. This lets you to utilize the equity of one property to buy another and thus you can buy another property.
You can enjoy several tax benefits by investing in real estate, better than investing in other stocks and bonds. If you had bought a property by utilizing mortgage then you are eligible to write off the interest, whatever you have paid for the whole year
Easier cash flow
Unlike other investments, here you are able to yield multiple cash benefits from the property. For instance, consider you own a property, you can enjoy the benefits of rent or can sell the property or a unit of a property
Benefits from Remodeling:
If you like to enjoy more benefits from the property, then consider buying a low-cost repair house, then you can also renovate or remodel the property and rent it for higher value.
Increased percentage of foreclosure property:
In recent years, there has been foreclosure property in the market. If you are able to purchase one then you have more benefits, because they sell the property at less than the actual value.
Increased property values
In recent years, you can see steady rise in the home values. There has been an increase in home values of 5 to 6 % from 2016 to 2017. Real estate experts claim that the cost will jump more by the end of 2018 yielding more benefits for the property owner.
Demand for affordable properties
As per the statistics report, there was less property for sale this year when compared to previous year. This ultimately means that there will be a shortage of affordable properties in few years.
Appreciation property values
While other investments like bonds and stocks come with less interest rate, real estate investment shows a great increase in the property appreciation values. Especially if you buy houses of moderate repair and foreclosure.
Building future for your children
By purchasing a property you can build your children future in a much better way by inheriting them. Solid property can be passed down to your children by this they can get benefits of the property payoffs.