Published by Kartik Subramaniam
Real estate is the biggest purchase any of us will ever make. With such a hefty price tag, you want to make sure buying property is worth your while. The good news is that purchasing real estate is highly beneficial and can pay significant dividends in a variety of ways, both now and in the future. Let’s take a look at some of the best parts of owning real estate.
Steady Passive Income
Many people think of owning real estate in practical terms -- if I buy a home, I don’t have to worry about paying rent or moving every few years. But real estate provides so much more than that type of peace of mind, regardless of what you’re investing in or your reasons for choosing to invest.
Real estate can yield tremendous financial benefits. The most notable perk is that real estate can be a source of passive income. Houses generally appreciate in value at a rate that far outpaces inflation. Real estate value has increased by just over 5 percent per year over the last 30 years, with increases this year the highest they’ve been in more than 45 years. These increases make real estate a great decision if you’re looking to set down roots or start a family. It’s an even better proposition if you’re purchasing properties for renting.
Regardless of anyone’s financial situation, one constant remains true – everyone wants to have financial stability. Real estate investments help in that area by providing much-needed financial security. The equity built into real estate provides a true cushion and options in case times get tough. Rent payments received can help to pay off your investment virtually by themselves. And the longer you own property and the longer you collect rent, the more those properties will be worth, and the more security you’ll achieve.
Taxes can be a bother to some, but to real estate owners, taxes aren’t so bad. Why? Because there’s so much benefit that can be derived from owning property. If you’re willing to look, you can find some great tax-based incentives that can save you some serious money. From exemptions based on locations and age to religious exemptions, there are plenty of options at your disposal. Tax exemptions and deductions can knock costly property taxes down significantly, if not eliminate them outright. Do your homework and see what’s available based on your situation and desired property.
We’ve mentioned the steady appreciation of real estate property values, and that’s a benefit that goes beyond making you money. It’s also assurance that your investment won’t go to waste. Stock can lose value for a multitude of reasons, but real estate’s value always remains high. There’s always a demand for property, and the physical nature of real estate means your properties will always be desirable to someone.
Nobody can predict the future. But the proven growth of real estate is as sure a thing as you’ll find. That’s especially important in the modern climate, when the pandemic and supply chain issues can have drastic ramifications on the economy. Real estate is a safe yet lucrative option that will guarantee your wealth if done properly.
Are you ready to get your real estate license?