If you are thinking of investing your money in stages or in lump sum then real estate investment in properties ought to be part of your overall portfolio. One advantage about real estate properties is that they increase in value over time. If you estimate value of real estate at their current prices then you will find them steadily rising despite decades of economic recession. Hence, there is always a guarantee as far price of your property is concerned although for many investors it may not be that fast as equity.
Although stocks give you faster return and sometimes within a few years, yet you cannot do any improvement on it. In case of properties you can always make conspicuous changes and bring about transformation such that its value is enhanced.
Benefits of Having Properties
In the first instance, besides able to carry out improvements on your properties, you are also able to have tax deduction on it. These are in the form of expenses related to your properties like repairs and maintenance costs, improvements made and interest paid on mortgage.
In real estate sector when you invest in property then the cost is recovered when you actually sell it on a later date. The more years go by the higher would your return as prices always appreciate no matter what. Several people remain invested in their properties till they retire whereby they are able to pay off their mortgages fully.
Predictable Value Increase and Better Leverage
When you go for property investment you may have little idea about properties. Yet if you have been able to get one for current value then it tends to go up over the years. This means that you needn’t go through intricate calculations like stocks and which ones will move up in price.
This reduces your risk considerably and you may need to wait an extra year or two for prices to go even further up before selling it. It also acts as guarantee for future mortgage on other properties that you wish to purchase. In case of large properties, it is better to appoint property managers to look after the same.
These managers would look into maintenance and repairs of your properties as well as contact brokers so that you may get higher price when you wish to sell it. Further, you can also earn a steady rental income from your properties by letting it out for tenants.