Real Estate Investment

Shamir Kumar Nandy talked about Real Estate Investment

Shamir Kumar Nandy

Real estate investment is also known as property investment. Real estate is not a new investment vehicle, and it has become a popular investment vehicle over the last 50 years or so. Real estate is an excellent investment for many reasons. 

People usually have a question on what is the best way to invest money that would not be needed for ten years; real estate investment usually was chosen as the first choice. According to a survey done by Bankrate, real estate was the number one choice selected by the respondents in the best way to invest money. These findings solidify real estate is growing continually and popular over other investment vehicles.

Why is Real Estate a Great Investment?

property investment

To answer the question, here are the top 5 benefits of real estate investment:

1. Values will always increase over time.

Over the years, history keeps on proving that the longer you hold your real estate, the more money you will make.  Owning a rental property can give investors a sense of security because of the property’s appreciation in value over time. These mean that your property’s value is most likely to increase as the land and buildings are appreciating assets. However, there is no promise saying that the value of the property will increase perpetually, so it is always advised to research the location before buying any property.

2. Cash Flow

Majority people invest in real estate because of the steady cash flow they can earn in the form of rental income. Real estate investment is unlike other investment vehicles; it enables you to make like monthly side income by your tenants paying rent. If you used the financing to buy your investment, you could use the passive income to allow you to pay off your mortgage. You will get the full cash amount directly once the mortgage is paid off. Besides, the passive income also can be your huge incentive to get you to buy your first rental property. It depends on the location that you choose as once you have chosen wisely, you can secure a steady cash flow of income for a long time and even save for retirement. 

3. Diversification

A real estate investment can diversify your portfolio. If you are an investor, it is sure that you are always aware of the importance of diversification. The risk will spread out if you diversify your portfolio. The property will still serve as a safe tangible asset to remit the risk in your portfolio. Many have amassed a fortune by solely investing in real estate. 

4. High tangible asset value

You will own tangible assets when you invest in residential rentals as it can offer a hedge against inflation. However, other investments, such as stock can leave you with little to no tangible asset value, which can decrease in value over time. In general, properties increase in value through appreciation and rents increase 2-3% per year. Hence, this allows an asset that offers a monthly flow of cash and grows in value over time without being subjected to the worst-case scenario or broad economic trends like other asset classes.

5. Numerous tax benefits

Owning real estate could bring you some great tax benefits. You may get tax deductions on mortgage interest, write off operating expenses and costs, interest from financing, insurance and several items related to the property. This is why at the end of the year,  there are a lot of people who are busy with real estate as they want to take benefit of the massive tax advantages before the end of the year.

Why is Real Estate a Great Investment

The Bottom Line

Real estate investment is not only a safe financial investment; it is also an investment that can provide years of happiness and fun that will last a lifetime. However, just like any investment, it is also vital to consider certain factors before closing the deal on the house of choice.

For more recent tips on property investment, feel free to reach out to Shamir Kumar Nandy (a real estate expert with over decade of investing experience) at shamirkn9876@gmail.com.

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