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Real estate is the most important investment of your life, and there’s no doubt about that. The boom in the real estate market has opened countless doors for interested parties and this is the time to take advantage of them.
Whether it’s to increase your portfolio or to acquire your dream home, real estate investment is a complex process. Many people who step in the chaos without professional help end up experiencing a loss. The right way to go about this is to contact a real estate company that has your best interests at heart. With the help of comprehensive knowledge and experience, Comprehensive Realty, LLC is your beacon in the dark. Contact them for your residential and commercial real estate investment needs for optimum results.
There’s no denying that real estate has a lot of potential for success, but to fully understand the benefits of real estate investment, you need expert insight. Only industry experts are able to divulge the true nature of such transactions. Before investing in real estate, it is necessary to know about the benefits and how they outweigh the costs of the process.
This year has been promising for investors so far, so this is the time to reap the advantages of this opportunity. Let’s get started and give you some industry insights about real estate investment.
1. Long Term Financial Stability
One of the benefits of real estate investment is that the move provides investors with long term financial security. With a handsome real estate portfolio at hand, the investors will always have a steady flow of cash. Your one-time investment will bring you financial rewards for years. Most properties appreciate in value over time, which is why real estate is the preferred investment option for many.
2. Tax Benefits
Investors who are looking for the ultimate benefits of real estate investment will love this one. Who doesn’t like to save some money, and real estate investors who own rental property can enjoy tax exemptions. But the real icing on the cake is when real estate investors get to enjoy lower tax rates on their long term investments. In a nutshell, making real estate investments can actually help you save some big bucks!
3. Benefits the Community
This is one of the benefits of real estate investment that exceeds beyond personal gain. Investing in real estate isn’t just about ROIs and a steady cash flow. These investments always have an impact on the community by offering rental properties and increasing the local tax returns. Investors have the power to improve the available housing crisis in their community and gradually progress the real estate industry of the region.
You will employ local contractors and purchase building materials from the community, which will stimulate the local economy. Some people might not consider this a true benefit, but the investors who want to play a part in the success of their community are likely to see this side of the story too.
4. Protection against Inflation
Inflation is an inevitable part of the economy, but with the right tools at hand, real estate investors can protect themselves. In other words, real estate investment is a shield against inflation. Once you have acquired a rental property and the prices hike up due to inflation, you stand to make more money from your real estate investments. It’s fair to say that real estate investors are safe from the immediate and long-term effects of inflation. As soon as the cost of living increases, the cash flow also rises.
To assess all that real estate investors stand to gain, you can compare the annual real estate appreciation rate with the inflation rate. Going over the figures of recent decades, it’s plain to see that the annual real estate appreciation rate has been 6%. On the other hand, the inflation rate during these decades has only amounted to an average of 4%. With a 2% difference in between, there’s no doubt that protection against inflation is one of the best benefits of real estate investment.
5. Easy to Finance
One of the most impressive traits of real estate investment is that it is easy to finance. Financial institutes are always willing to lend 50-90% of the acquisition cost, making it quite easy for investors to acquire properties. The rates offered are also quite attractive, which oftentimes are below the anticipated annual investment return. Real estate is one of the few investments that have the ability to magnify the investment return. This characteristic of real estate investments is called positive leverage, which provides enhanced convenience when used as collateral.
6. Mitigating Risk
Investing is a risky business and oftentimes your most thought-out plans are doomed to fail. People prefer stocks for their regulated income-generating trait, but having all your eggs in one basket can be a dangerous thing. Investors may get used to a calculated income month after month, but with a diversified portfolio, you can mitigate risk. With the right blend of real estate investments, the investor can reap great benefits.
Final Thought
These are just some of the benefits of real estate investment that will show you the right direction. Don’t let your hard-earned money go to waste in shady investments. Opt for real estate investment so you can enjoy the long term benefits!
We aim to be the most comprehensive, versatile, and expert residential and commercial real estate investing and operating company in the country. Our team of trained and experienced realtors strives to improve local communities by helping homeowners and businesses!
Get in touch with us at 443.604.9926 to discuss your queries and investment ideas!