Real Estate Investment
Constant cash flow
Unlike investing in stock and dividends. Investing in real estate’s gives on a better return of income than investing in other areas. One is also guaranteed of when the revenue is due and the amount to be received. Have you ever wondered where the cash home buyers I can sell my property to.
Hedge on inflation
Real estates are one of the businesses that respond so positively to increase as compared to other investments. Each earned dollar has its liability. As economies’ around the world continue to grow it is key to note that income streaming from real estate is enough to hedge inflation.
Capitalize on the physical assets
Real estate is one of the investments with the significant value. The land where the property set has value so does the building, and it will keep generating value for future investors. Investing in real estate does not have bullish and bear days as the stock market.
Asset value appreciation
As years, have gone by inflation has increased in the economy reducing the purchasing power of the shilling. Notably, income from real estates has always appreciated over time and not affected by the increase. The net operating income on the property keeps growing as the rent increases due to inflation.
Maximizing tax benefits
Real estate has a lot of tax savings. The US Tax Code give real estate investors depreciation accelerations and unlimited mortgage interest deductions that take care of the positive cash flow.
Feeling the pride of ownership in real estate
Home ownership is not an investment that many people can invest. Owning real estate make the owner have a sense of pride. If and when your property is located in the right environment, attracts the right tenants and also draws the fight amount of rent. One has a sense of pride also give that homeownership is out of reach for most of the population. Also, the value of real estate keeps going up with time and does not depreciate.
Using leverage to multiply asset value
Real estate places debt on the asset. The debt on the asset is always more than the equity. Leverage while increasing your asset you room to purchase more assets and multiple asset values, increasing the investment as debt is paid little.
Low-cost debt leveraged to multiple cash flow
Having a “positive leverage” on the asset allows investors to increase the income stem from the property by borrowing money at a rate than the revenue flow.