If you want to invest in real estate, there’s no better time to do it than right now. 2018 is a great year for real estate.
Investing is something that a lot of people should be doing anyway because it’s a great way to save and set yourself up for the future.
And real estate is the best way to do it these days because there is just so many benefits to putting your money into property.
Of course, buying property is not the only way to invest in real estate. You could invest in construction companies or companies that focus on real estate.
Buying property is the most common way though and probably the one that will lead to the most long-term rewards.
Here’s five reasons why you should be investing in real estate.
1. Tax Benefits
It’s no secret that you will have to pay taxes on anything you ear, and income from real estate investments is not exception to that.
But there is some major tax benefits on offer to those who invest in property and because you’ll be paying so much to get into the market, this is essential.
You can deduct almost all of the necessary expenses from your taxes and this ranges from the mortgage interest to the electrician you hire once to fix a broken outlet.
You could actually eliminate this complication completely if you wanted to and give some of the handy-work a go yourself.
You might think I’m joking, but if you’re a property owner it’s worth your time learning some basic maintenance.
If you had a good set of tools with stuff like hammers, screws and maybe even a table saw, you could fix some problems yourself and not even have to worry about paying tax on construction.
But even outside of that, with all of the deductions as well as depreciation and the like, the tax benefits are numerous.
Investing hs become an awful lot easier these days on account of how far we’ve come with technology.
AI is helping out of course, but just general advancements to do with computers and the internet are making it easy for people to stay on top of their real estate investments.
If you are tech-savvy, you can use a lot of the modern advancements to your advantage and be a few steps ahead of the game.
Instead of having to travel all the time to seek out and slave over legal document after document, you can do all of that now from the comfort of your own home.
You can use Craigslist or various other similar sites to advertise property listings and you can always keep up to date with investing trends.
And you won’t ever have to collect rent in person because your tenants can just set up standing orders.
Real estate investing is just infinitely more efficient than it was even a decade ago.
If you’ve never heard of this before, it’s an accounting term that refers to allocating the cost of an intangible asset over a specific period of time.
In the case of real estate investing, it refers to the mortgage that you’ve taken out to buy the initial property.
The two components of any loan are the principal and the interest, and because you’ll have tenants, you will have the principal covered by the rent they’re paying.
Having tenants means that you don’t have to worry about throwing any of your own income into this particular mortgage. This is a huge benefit.
4. Income Return
When you make investments in areas other than real estate, you cannot always guarantee that you will be making an income return.
Unless of course you buy shares from companies that offer dividends, but with real estate investing you don’t have to seek out those companies.
These non-real estate investments are entirely reliant on how well the stocks themselves do, and even a promising share could end up going under and costing you a lot of money.
In real estate, if you are a landlord and have tenants paying rent, that is a guaranteed source of income.
As we mentioned above, it can cover the principal component of your mortgage but it could potentially be as much as a full-time income.
Because you don’t necessarily have to do too much to maintain a property yourself, you can also work a full-time job and have two sources of income.
When put like that, it’s hard to argue with not investing in real estate.
5. Supply is Low
While a low supply of housing might not be a good thing for people who are looking for a place to live, it is definitely a good thing for real estate investors.
The supply is extremely low in spite of a recent increase in construction but demand is not getting any lower.
This means that the value of property is much higher than it has been in the last couple of decades.
This is probably not going to last forever, construction is evolving rapidly thanks to AI and other advanced technologies so it could soon close the gap.
But you have a window of opportunity before then. It would be a good idea to give your property a bit of a remodel so that you can stand out from the pack.
If you’ve got an attractive property that’s been remodelled for luxury then it’s more likely potential tenants will be interested.
Take advantage of this low supply while you can because as I’ve said, it’s not going to last forever.
Investing in real estate can make a huge difference to your life because it can basically give you a steady flow of cash into your bank account in exchange for very little effort.
And that’s just one of the many benefits. It’s a practice that not many people are aware of the advantages of, you can be ahead of the curve though if you start right now.