There are a lot of areas where you can invest your money – stocks, bonds, mutual funds, etc. but there’s nothing quite like real estate. Real estate investment is undoubtedly one of the most profitable ways to invest your money. Here are a few reasons why:
- Nothing quite like steady cash flow!
Cash flow is the consistent income that you get after all the initial expenses, mortgage payments, and so on. Once the homes or Condos are completely yours, you can earn quite an amount every single month which ensures a steady income.
- Tax deduction.
There are a lot of tax deductions that you can avail of when it comes to real estate – property upkeep, maintenance, mortgage and interests, and so on. This can help you save a lot more.
The idea of leverage is to use the borrowed capital to increase the return of investment on your property. This is the leverage in real estate deals that can earn you enough money (return of investment) to invest in yet another property.
- Capital value appreciation.
This is a phenomenon that is strictly confined to real estate. Once you invest in a property, the capital value starts to increase right from the time you sign your contract. That is, the market value of your property tends to climb up over the years and by the time you sell it, you can bag a great deal of profit.
- You’re the boss!
As for the stock market and mutual funds, the variation in the market affects you adversely. That’s not the scenario when it comes to real estate. You can be in complete control – sell your property only when the market is soaring; if not, wait it out.
If this hasn’t convinced you to put your money in real estate then we don’t know what will. Oh wait, we do! The real deal in real estate: future projects. Yes, the idea of future projects might seem a bit risky for real estate beginners but trust us when we say this – future projects are the best way to stay a step ahead when it comes to investment plans and securing your future. Future projects are Pre-Construction properties that the investor owns but can only acquire once complete. One can invest in these properties right from the initial days of construction. You’ll have to wait a few years until you can get your hands on the finished property which usually takes 3 to 4 years or more. But don’t be discouraged by the occupancy period. Your property value will increase during these years and that is one of the best things about owning a future property. Pre-construction properties are a great way for you to secure your future as you are investing in the future. Future properties come with a promise of consistent passive income, higher return of investment, and various tax deductions and benefits. The initial costs of investing in a future property will be covered easily with a few months of rent that the tenant pays you. In fact, it is the tenants who are responsible to pay the mortgage rates and not you. If you’re not renting out your property and instead is looking to sell it in the market then a significant amount of profit is assured. As for the tax benefits, you can claim deductions on interest rates for your property loan. All these factors reinforce the fact that future properties are without a doubt the best way to ensure long-term financial security.