15 Mar 2024
Why Real Estate Investing Is A Worthwhile Option
One of the best decisions you can make is to invest in real estate. If done correctly, real estate investment is stable, profitable and can return a very attractive profit return. Here are some of the reasons why:
Very likely to appreciate
If you do your due diligence properly and invest in areas where property values typically appreciate, you can be almost guaranteed on property appreciation. Working with a reputable real estate company can help you chose a property will have a good chance of appreciation.
Build wealth
In most cases, the property you own will appreciate and increase in value over time. As the property appreciates in value and the mortgage is paid down, the equity is gradually built over time, generating wealth for you.
Hedge against inflation
Over the past 3 decades, home prices have stayed consistent along with inflation. Instead of being negatively impacted, real estate investments generally rise in value along with inflation.
Passive income
If you rent out your real estate property, you can receive passive income. Despite the time and effort to maintain the property, rental properties generally return a positive cash flow to the owner. Coupled with the increase in value of time, owning a rental property can be an attractive proposition, better than investing in the stock market.
Ability to leverage
With mortgage financing, you can put down a required amount as a down payment and borrow the rest. This allows you to purchase a property without matching the purchase price dollar for dollar.
Predictable cash flow
Unlike the stock market where a stock price can be determined by macro-economic factors, real estate investing can give you a more stable and predictable cash flow as your rent and costs are calculated in advance and rarely fluctuate, so you know roughly how much money you will bring in every year. This can give you some semblance of peace and stability.
Borrow against the property
Once there is a sufficient equity built up in your property, you are able to borrow against it. The borrowing rate will be an attractive one as the loan will be backed by a tangible asset – your property.
Tax deductions
Investing in real estate will make you eligible for tax deductions that stock and bond investments do not get. In many cases, property taxes, capital cost allowance and mortgage interest are tax deductible.
Looking for a stable real estate investment? Contact us and one of our experienced real estate advisors will guide you every step of the way.
Very likely to appreciate
If you do your due diligence properly and invest in areas where property values typically appreciate, you can be almost guaranteed on property appreciation. Working with a reputable real estate company can help you chose a property will have a good chance of appreciation.
Build wealth
In most cases, the property you own will appreciate and increase in value over time. As the property appreciates in value and the mortgage is paid down, the equity is gradually built over time, generating wealth for you.
Hedge against inflation
Over the past 3 decades, home prices have stayed consistent along with inflation. Instead of being negatively impacted, real estate investments generally rise in value along with inflation.
Passive income
If you rent out your real estate property, you can receive passive income. Despite the time and effort to maintain the property, rental properties generally return a positive cash flow to the owner. Coupled with the increase in value of time, owning a rental property can be an attractive proposition, better than investing in the stock market.
Ability to leverage
With mortgage financing, you can put down a required amount as a down payment and borrow the rest. This allows you to purchase a property without matching the purchase price dollar for dollar.
Predictable cash flow
Unlike the stock market where a stock price can be determined by macro-economic factors, real estate investing can give you a more stable and predictable cash flow as your rent and costs are calculated in advance and rarely fluctuate, so you know roughly how much money you will bring in every year. This can give you some semblance of peace and stability.
Borrow against the property
Once there is a sufficient equity built up in your property, you are able to borrow against it. The borrowing rate will be an attractive one as the loan will be backed by a tangible asset – your property.
Tax deductions
Investing in real estate will make you eligible for tax deductions that stock and bond investments do not get. In many cases, property taxes, capital cost allowance and mortgage interest are tax deductible.
Looking for a stable real estate investment? Contact us and one of our experienced real estate advisors will guide you every step of the way.