7 Reasons Why You Should Invest in Real Estate in 2021

Real Estate has always been a great investment option irrespective of which era we live in. We have seen time and again how people sometimes benefit from buying a piece of real estate whether it’s a home in a big city or a part of the land in an upcoming town. Real Estate Investments are not volatile and less liquid as compared to other forms but they are certainly worth it. Here are 7 reasons why you should consider Real Estate as your Top Investment Option:

1. Real estate is a tangible asset.

As opposed to stocks and equity shares or even Bitcoins, Real Estate has and will always have high tangible asset value. It is the prime reason why investing in Real Estate will never leave you high and dry. 

In most cases, your asset value is likely to double or even triple in a decade or so. 

2. You can Increase its value by upgrading.

You can always increase the value of your real estate asset by adding additional amenities like building another floor or remodeling the kitchen if it’s a house. Any improvements will add to the value of your home when you’re ready to sell it. 

3. Real estate offers better returns than the stock market.

Under the right circumstances, real estate can be an alternative to stocks, offering lower risk, yielding better returns, and providing greater diversification. The average return from owning real estate over the last decade has been 11.6% per year which is higher than stocks.

4. Real Estate is a passive income source.

Real Estate can help you generate passive income which is always a great idea. You can rent your home or apartment or maybe convert it into a hostel or PG and generate a substantial income. You also have the choice to rent it out to event companies or offices or even as a vacation rental which is hugely popular these days and very profitable. Plus, you get yourself a vacation home to relax too.

5. You can use rental income to pay down your home loan

The great thing about renting your home is to use that money to pay for your home loan. Thus, buying a home today isn’t a hard decision for many people. First-time homebuyers are mostly living on rent and paying huge sums monthly to their landlords. Thus, paying for a loan instead seems like a much better choice, you just need to save up for the down payment.
 

6. Get Tax Benefits

Tax benefits are one of the important considerations when planning to take a housing loan. If you own your own house, you can deduct mortgage interest. Many taxes are also deductible. If you use the money from a sale of one property to buy another property, you can defer your capital gains. Thus, buying a home is great for your taxes.

7. Save for retirement

Investing in Real Estate is a great way to invest in the future. You always have an asset to count on in your older years. 

You can also sell your big home for a smaller one and set aside a great sum for other adventures like traveling the world with your other half. Most Americans downsize and buy an RV to travel the world and live a much more exciting life.

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