What is the Need of Investing in Real Estate
One of the primary benefits of real estate in tax discounts. One thing with real estate is that the investors are being exempted from paying taxes in some countries but in other countries they are just paying a smaller percentage. This is going to result into more revenue since there is less expenditure. Apart from that, they are also being rewarded by the government for having built houses to absorb the squatters. By doing that they are doing the government a big favor to help absorb the homeless. Compared to stock market that pays a lot of tax besides suffering from inflation.
Another benefit is that it appreciates in value. The value of property can take even 100 years before it starts to depreciate. You can just do some simple maintenance practices to boost the value of your property. Like painting the whole building using high quality pain will come with a reward of boosting the value of the house. Apart from that, you can also fix the broken pipes, sinks, showers and even the kitchen cabinet. 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. One thing with banks and other money lending institutions is that they can easily give property investors loans that the stock market. They do that since real estate does not depreciate in value easily. In case you default in repaying the loan they will just come and sell your property to get their money back. With stock market it is tricky since you can even die without leaving any trace behind.
It is also beneficial to invest in real estate because of the law maintenance cost. All the maintenance practices that are undertaken in real estate does not go in vain. This is because once you do something you will get your money by increasing the rental charges. Like when you paint the whole building using high quality paint you will have to increase the rent so that you can get your money back.
Apart from that, real estate investment brings 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. They are not being affected by inflation like the stock market.