Investment in real estate is gaining more and more fame with the passage of time. People are becoming keen in adapting real estate as their main business. The reason behind are the advantages related to investment in real investment. It is undoubtedly as attractive as investment in stock market but three times more productive than it. As real estate business is also monitored by external market forces so it has same risk factor like other businesses. But, the benefits attached to real estate development are worth mentioned that are attracting investors. Here are some as follows:
- Real Estate Investment are Less Risky
As mentioned before that real estate is also affected by market forces but the risks involved are comparatively less than other investments. Traditionally there is mindset that real estate is a stable and beneficial business but more fruitful if it is seriously and carried our prudently. For instance, if there is a geographical surrounded by suitable infrastructure and has less mortgage rates it will be more advantageous in investing real estate.
- Less Starting Capital
Unlike other business investment, real estate does not require a large capital to start up a business. A property can be procured in little investment such as 10% of the actual value of the property. Let it explained with an example.
For Instance, you are starting real estate business and you planned to buy a condo. For the purchase you don’t need to pay the full amount as properties are available on mortgage. You pay only 10% of the actual amount and the remaining amount can be paid on holding the property as security along with mortgage rates.
- Honing Investment Skills
For a novice investor real estate investment is a good practical to gain experience. With the fact of less risk, real estate provides good opportunity to comprehend with practical for scratch line investors.
- Real Estate Appreciation
An appreciation is an increase in the value of property over original capital investment with the passage of time. This has been evident that real estate properties that are in geographically located in smart location, having high demand shows above average appreciation in its value.
- Tax Exemptions
In real estate investment there are various tax exemptions over the principal and investment income property. The number of tax exemptions that are available in real estate in higher than any other business. Unlike other investment the owners loose terribly in the form of tax payments and inflation but in real estate business one is save from such interruptions.
- Demand for the Real Estate
The growth of population with the passage of time is a natural process and need for a space to live is a main necessity which is also increasing. With the escalation of population the total usable land is decreasing because it is being deployed by the people, thus resulting in limited land available for use. This factor is playing an impressive role in higher demand for the land and obviously then higher return on investment.