There is no denying that almost, if not all people, want to be rich. Especially during this time of the current drastic fall of the world’s inflation, everyone is grappling for less of a hard blow on their wallets. This is why we are here to let you on a financial saying that only the wealthy know: the poor spend, the middle-class save, and the rich invest.
Investment multiplies, not adds, money for those who use it wisely. And what do the people we aim to emulate invest in exactly? The answer is house and lot.
Think about it. Your house and lot are the sanctuaries of your and your children’s lives. It is your sanctuary after a long day at work. Your children can finally be themselves and relax after giving their all in school and in their sports practice. Your spouse can finally be wrapped around your arms again. But, guess what? You are not the only one who feels the same thing when it comes to a house and lot. Everyone around the world very much loves the house which they call home.
And the rich know this and use it to their advantage. This is why you, too, should consider real estate investments.
Here are more reasons why it is good to have investment properties:
The One Thing We Love Is Consistency
Our favorite authors, restaurants, TV series, and go-to places are our favorites for a reason: they are consistent in what they deliver. They constantly taste good. They constantly spin our heads with excitement. They constantly shock us with truths that make perfect sense. We always go back to what is consistent. They give us peace of mind, arguably the best luxury in the world, for they are reliable. And that is what the real estate market offers. Consistency.
Real Estate Investing Gives That Same Peace of Mind.
By having real estate investments, you can boost your income monthly in a steady way by renting your space to tenants. You got into a car accident and the financial damages are quite a burden? Or do you want to treat your family to a cozy vacation up in Baguio? Wait till the end of the month to knock on your tenants’ door to get their monthly rent. That is how easily you can get money: just by a knock on a door.
If you are worried that your place will not have any tenants, fret not for, remember, housing is one of the basic needs of a person. And also, it is a known fact that our country’s population just keeps on growing. Soon, people will be fighting for spaces to live in.
Get Rid of It but With Profit
Let us say you want one thing off your list and that is one of your properties. Perhaps it is because you and your family found another place to live and make wonderful memories. And let us say you want to get a brand new Toyota car to go with your new home. You can pretty much gain instant big bucks by selling your previous property. The greatest thing about property is that it appreciates. Its value goes up, especially when it is unscathed. This means that you may have bought your original home for 1.2 million pesos, but you can sell it for double that said price!
That Is How Valuable Property Is.
Additionally, owning real estate is another financial boost option to this while waiting for many years to go by so that your property’s value will increase, you can rent it out! Monthly income than several million 5 years later? We do not know about you but this is such a great treat for anyone’s wallet.
Use the Law to Your Advantage
You can get tax benefits by investing in real estate. It is by law that anyone could deduct several expenses associated with owning an investment property, including your mortgage interest, property insurance, property taxes, property management fees, the costs of ongoing maintenance, the cost of repairs, and the money you pay to market your property to potential renters. According to Rocketmortgage.com, a reliable financial online adviser, if you sell your property for more than you paid for it, the gain you realize won’t be taxed as income. Instead, it will be taxed as capital gains, which typically come with lower tax rates than income. If you invest in opportunity zones – neighborhoods that are in need of investment – you’ll pay even less in capital gains.
Level up Your Funds
There is a superpower when it comes to real estate investment. And that is the ability to leverage funds.
Say you want to fully invest in a property but can’t because let us face it, with all the benefits that have been previously noted, real estate can be pricey. But that is where leverage comes in. This term means that one is using other people’s money to purchase properties. We are not talking about anything illegal, do not worry.
We are talking about something pretty basic and you may have even done this before: loaning.
You can loan from mortgage lenders, credit companies, and of course, banks in order to slowly sneak your way into the full ownership of a property. This will give you so much leeway to eventually own property all the while not shocking your bank account with dropping numbers.
Hedging Inflation
It does not matter if you are rich or poor, every one of us is feeling the current inflation. You can ride a second-hand motorcycle or a Porsche. You will still pay the same 60 pesos per liter of gasoline.
But if you are a real estate investor, you definitely would not have to wince that much.
When everything goes up, the real estate investment that you own, shocking as this may seem to you, also goes up as well. You very much part in the party of eating the creamiest and sumptuous of pies if you invest in real estate.
Immediately Add Another Zero to Your Bank Account
Trying to make history in your family? Or you and your sibling are having a contest on who will be the first one to have 10 million in their bank account? Nevertheless of your goal, if you suddenly want your bank account to spring up, you can just sell a property of yours to add a million or two to your pockets.
Real estate investment could be an alternative to investing in the stock market. According to Investopedia.com, it has less risk and more opportunities, while the stock market is subjected more to economic and inflation risk.
Control
We are scared of the things we cannot control. This is why we tend to be scared when investing in stocks, or building a business.
But with real estate, you are definitely the boss. No need to worry about such presidential announcements or world crises will suddenly make the value of the things you own go down.
You are very much the boss of your property and the great part is? You do not have to do anything but maintain the great condition of the property you once called home.
Additionally, if you are feeling generous (which you should be), you can also provide your real estate as evacuation centers when a flood hits our country again.
Related Blog: Why You Should Begin Looking at Property Investments
