5 Reasons Why Real Estate Is a Great Investment

For many reasons, real property is a great investment. You will benefit from a good rate of returns, tremendous tax benefits, and building up land. Here are the top 5 reasons why property is a major investment.

1. Real estate provides better returns than the stock market without as much volatility.

Historically, in real estate, the chance of failure is reduced by the length of time you keep the land. If the economy increases, you gain wealth and also the value of your house. The danger in the stock market never shifts, and numerous factors outside your control will affect your investment negatively. Real estate gives you more leverage of your investment because your property is a tangible asset and, while enjoying capital appreciation, you can capitalize on various revenue streams.

2. The value of real estate is high.

There will always be value in your land, value in your home. Certain investments will leave you with little to no tangible value, such as an inventory that can fall to null or a new vehicle that over time reduces value. Homeowner insurance protects your real estate investment to ensure your asset is protected in the worst case scenario by obtaining the best policy available.

3. Real estate values will always rise.

History keeps proving that the longer you hold onto your real estate, the more money you make. The housing market has always recovered from past bubbles that caused a slip in home appreciation, and prices have returned to normal for those who held on to their investments during those uncertain times, and appreciation is back on track. Today, real estate investors are experiencing a windfall in top performing markets. In reality, every state in the nation has had a strong appreciation this past year, and some of my Los Angeles business clients have made millions of dollars from flipping in less than a year.

4. An real estate investment can also diversify your portfolio.

If you've ever spoken about investments to a financial planner then you're well aware of the importance of diversification. You spread the risk when you are diversifying your portfolio. Real estate will always serve as a stable, tangible asset in your portfolio to mitigate the risk. Many have accumulated wealth by investing exclusively in real estate.

5. Investing in real estate comes with many tax benefits.

You can get tax deductions on mortgage interest, investment property cash flow, operating and cost expenses, property taxes, insurance and depreciation, and other benefits. The end of the year is a very busy time for real estate, because before the end of the year, people want to take advantage of the many tax benefits.