Reasons to invest in real estate. Why people invest in real estate, here are few reasons;
- Passive income
- Inflation friendly
- Tax advantages
- Appreciation of prices
- Accommodation in future
- Better to keep a plot than putting in banks
- Maintenance cost of this asset is very low
It is the source of income apart from your salary or business. You can run your house expenses from the rent of your property or you can start your own business and save office rent and other expenses.
Now most of the world is going online and working from home, it will help you to save some extra expenses and you can run your office things from your own home.
When inflation in the country is increasing and job market is closing day by day, you will not go bankrupt as you will have your own roof.
Also the main point even in inflation times the prices of your property does not lower down but they increase over time.
It has been noticed that you can save few dollars while paying taxes. It means that there is some tax advantage for people who own property.
Appreciation of prices:
It is the only asset which appreciates while other assests depreciate even your car or other things. The loss ratio is minimal, not even 1%.
Accommodation in future:
Families grow, you need space when your children get older. Property becomes your that asset which can be used anytime you need.
Better to keep a plot than putting in banks:
Money in banks does not give you the return which you can get from the property.
Maintenance cost of this asset is very low:
You buy a car and you pay for its maintenance every month. But when you have a house you will get it colored in every 5 or even 10 years after.
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