Real Estate is majorly defined as a property which contains buildings, as well as its natural resources like crops, water, minerals, etc. There are four types of real estate, namely Residential Real Estate, Commercial Real Estate, Industrial Real Estate, and Vacant Land. This business basically deals with buying, selling or renting of housing, building or lands. The works are performed not directly but by the help of the aid of a third person i.e. an intermediary. This intermediary is known as Real Estate Agent or Real Estate Broker.
A real estate investment is considered very profitable. There is quite a long list of real estate agents who have successful clients. Many together have flocked to invest in this, though it has minor risks, if studied in detail and researched thoroughly, such risks can be easily taken care of. These are five definite reasons as to why should one for once give a try in investing in Real Estate:
1) Safe and Secure:
Unlike stock market real estate investment is not so volatile; it is more of a known and calculated risk, which can be to a certain extent taken care of. It is maintained that with the growth of time the amount of possible loss minimizes.
Also with an improving market, the valuation of the property increases and thus helps in building equity. Stock market investment isn’t tangible, which is not in the case of a real estate investment and thus the latter gives much control to the investor of his or her investment. Thus one can leverage to capitalize on a num-ber of revenue streams, while they enjoy capital appreciation.
2) Tangible Value:
A real estate investment has itself associated with much higher tangible value and is frequently considered to be an asset. Other investments may have a very less to almost no tangible asset value, but that is not the case here. Along with that, there is always homeowners insurance that’ll protect the investment even in the worst-case scenario. Thus it is important one opt for the best policy for result in the near future.
3) Quite Profitable:
It is believed for a very long time, that the more you hold on to the investment more the value of it will increase and thus it helps earn one more. The housing market is seen to always have retrieved itself from previous downfalls which had, in turn, led to home appreciation to slip. But those investors who had been pa-tient at those moments and waited, had got their appreciation back on track, thanks to the prices which have returned to normal. And this has led investors to earn huge profits.
4) Portfolio Diversification:
Diversification has a very significant role to play in investments. With the act of diversifying one tends to spread out the possibilities of risks. Since real estate in-vestment is always considered to be a valuable tangible asset, many are there who solely have an investment in real estate as a way to earn wealth.
5) Tax Benefits:
A real estate investment comes with many a tax benefit. Tax deductions can be made on mortgage interest, operating expenses and costs, insurance and depreci-ation, cash flow from investment properties, property taxes, etc. and many other benefits. It is seen that year-ends become a very crucial time for investors, for they tend to curb the numerous tax advantages before the year officially comes to an end.
In the present world, everyone is advised to at least make one investment in this field. More than that it is necessary that investors keep patience and hold up to their investment for a better result in future times.