Why do Most of the People Prefer Investing in Real Estate
Most of the people prefer investing in real estate because of the tax discounts. This is because property investors are always sidelined when it comes to paying tax in some countries while in other countries they pay very little. As a result, they will be in a position to generate more revenue and spend less amount of money. Apart from that, they are also being rewarded by the government for having built houses to absorb the squatters. These houses are like a lime light to the government since they have helped in solving the squatter problem which is a tress to the government. Compared to stock market that pays a lot of tax besides suffering from inflation.
One of the benefits of real estate is that it appreciates in value. You will realize that a property can stand for over 10 years before it depreciates in value. The moment you see the value of your house going down you can do some maintenance practices to make it look new again. You find that if you paint the whole building with high quality paint will be enough to boost the value of your house. You can as well fix the broken pipes, cabinets, sink and showers. This is something that will make the value of your building will go high.
In addition, it is also beneficial since they are in a better loan position. Most of the banks and other money lending institutions find it easy to give loans to real estate investors than those who invest in the stock market. Normally the property will not depreciate in value for very many years. In case you default in repaying the loan they will just come and sell your property to get their money back. Take case when someone dies with loan on stock market getting the money will be hell of work.
Apart from that, real estate has low maintenance cost. One thing with real estate investment is that any maintenance practice undertaken must be compensated. To achieve this you will have to increase the house charges anytime you do major changes. For instance, a situation where you decide to use high quality paint in painting the whole building you will have to increase the rent so that you can get your money back.
Another benefit of real estate is that it brings good returns. With real estate investment you will be in a position to get the money that you used in construction within a short period of time. For one the rental charges of the houses in real estate are never depreciating since they cannot be influenced by things like inflation. One of the things that causes instability is inflation which is not experienced in real estate.