If you have to make big bucks in a shorter period of time and are looking for some kind of financial security as well, your best bet at investment is in real estate. In today’s world, money makes money. It is not a wise financial decision to pile up your money in a bank and collect minimal amounts as interest. Instead, other options like mutual funds, stocks, and bonds can help you multiply your wealth faster. However, the one that is the most beneficial and surest ways to make money faster is real estate. Many real estate agents have made millions through property dealings who bear enough testimony to this fact.
Why real estate?
Now, the first question that arises here is, why should you invest in real estate? What are the perks associated with it? For starters, real estate prices are appreciating most of the time. Rarely, you see a fall in the market value of a property. Secondly, in bonds and stocks, you have to pay the whole amount for ownership, whereas, in real estate, you can make a down payment and become the owner and then pay the rest of the amount in instalments, along with interests. The best part, you can even generate this payment through rent itself, by leasing out your property to tenants. This makes it the ideal investment if you want to start small or do not have a lot of capital in your hands. Thus, it can be safely concluded that real estate is one of the safest modes of investment for generating wealth.
Real estate wealth expansion guide
Here are a few reasons why you can expand your wealth extensively through real estate-
Tangible asset- when you decide to invest in a property, you become the owner of it even though you pay a partial amount. Using this method, you can have total control over your property completely. It also gives a sense of pride and competence to be the actual landlord of tangible assets, which is an additional benefit for a real estate agent.
Steady income- once you own a property, you are guaranteed a steady flow of income once you decide to rent it out. You can also make slight modifications to fetch more money easily. For example, include more units to rent it out as office space in a commercial area. You could convert your area into a shopping complex as they will pay more rent than a normal tenant. Make sure you have explored all your options with respect to your property. Whatever you choose to do, though, there is always a steady income that is guaranteed.
Leverage- with the same amount of money at hand for investment, you can buy stocks and bonds of only that amount, but the valuation of a real estate property will be much more. Even a slight appreciation in price will result in more income generation as the percentage is based on the final amount.
Rental income- like mentioned before, if you lease out your property to a tenant or an office space or start-up etcetera, one thing you can be assured of is a rental income. You should have a proper rental agreement in place and make sure that the legal route is followed while implementing it.
Control over the property- once you invest in real estate, you become the owner of the property. As owners, you have the freedom to do what you want with it, as long as you abide by the laws. Thus, complete control can be exerted.
Access to equity without selling assets- in case you are in immediate need of cash, if you have stocks or bonds, you can sell them. However, you have to pay tax on the gains that you make. On the other hand, since you have an asset at hand, you can use it as a mortgage to take loans and repay it later. Access to equity also increases.
Tax benefits- there are many methods of cutting down on taxes through real estate. One potent method of doing so is including the interests for paying the rest of the amount of the mortgage in your expenses so that it gets excluded from taxation. Thus, there is a lot of scope of being exempted from taxes.
Long term financial security- if financial security is your main priority, there is no better avenue for investment other than real estate. There will be income generation as long as a renter is present, and you can even think of the long term with this approach.
Appreciation of real estate- real estate is one of the most sorted methods of generation of wealth as there is very little scope for depreciation. In fact, it appreciates and increases over some time, and your property will be worth much more in a decade or so.
Inflation- real estate property is also most immune against inflation. Instead of getting affected by it, real estate becomes all the more lucrative with inflation.
All the reasons mentioned above must be convincing enough to ensure that you put your money in real estate instead of any other avenue for increasing your wealth safely and surely.