Why do Most of the People Prefer Investing in Real Estate
It is beneficial to invest in real estate because of the tax discounts. This is because property investors are always sidelined when it comes to paying tax in some countries while in other countries they pay very little. This is going to result into more revenue since there is less expenditure. Apart from that, they are also being rewarded by the government for having built houses to absorb the squatters. By doing that they are doing the government a big favor to help absorb the homeless. Unlike in stock exchange who are imposed to high tax rates and they also suffer fluctuations.
Apart from that, real estate always appreciates in value. The value of property can take even 100 years before it starts to depreciate. You can just do some simple maintenance practices to boost the value of your property. You find that if you paint the whole building with high quality paint will be enough to boost the value of your house. Apart from that, you can also fix the broken pipes, sinks, showers and even the kitchen cabinet. As a result, you would have boosted the value of your house by some percentage.
In addition, it is also beneficial since they are in a better loan position. Most of the banks and other money lending institutions find it easy to give loans to real estate investors than those who invest in the stock market. This is because the property will never depreciate in value and it will always be there for several years. For that reason they will just come and sell your house Abd get their money back in case you don’t pay the loan. Unlike stock market that when you die you will go with their loan and tracing it will be a big problem.
Apart from that, real estate has low maintenance cost. All the maintenance practices that are undertaken in real estate does not go in vain. You find that you will be increasing the house charges anytime you do some major maintenance practices. Like when you paint the whole building using high quality paint you will have to increase the rent so that you can get your money back.
It is beneficial to invest in real estate because of the good returns. This is because within a short period of time you will be in a position to get the initial capital that you used in the construction of property. This is because the rental charges are always steady and never at any point will you find them depreciating in value. They are not being affected by inflation like the stock market.