Why Real Estate Investing is a Good Idea in 2020

Financial advisors recommend investing as a good way of boosting income and attaining financial security. Most people are looking for the most suitable areas of investing that guarantees huge returns with fewer risks. According to the market trends, one of the most profitable ideas that you should consider today is real estate investing. The demand for both commercial and residential property is high and that what makes real estate investing a good idea. Real estate stands out among other investment ideas such as stocks and bonds as it is a unique product because of its size and location. Investing in real estate is not usually an easy decision to make, but with the benefits that you are likely to enjoy, you should consider it today. By reading the article herein, you will learn why real estate investing is an excellent idea in 2020.

One of the compelling aspects about real estate investing is guaranteed future appreciation. Research shows that real estate has a growth percentage rate of 5.4 which is way higher than in stock and bond investment. A return on investment is usually guaranteed for an unforeseeable future. For that reason, if you desire to improve your earnings from time to time, real estate investing is the best idea for you.

Real estate has a high leverage value. It, therefore, means that you can use it as an asset to secure loans from financial institutions. The money can then be channeled in improving your real estate property investments. Financial responsibility is a key thing that lenders look into when establishing the eligibility of a loan applicant. Also, real estate investing is advised as you can increase the value easily. Once you buy the property, you can make changes that will positively affect the market value. Stocks and bonds are regarded as plain assets hence zero improvement potential.

As a real estate investor, you will enjoy tax benefits. One of the tax implications is a capital gain tax which comes if your buy or sell a real estate property. Additionally, you will have the chance to enjoy federal tax deductions such as maintenance costs and property upkeep. Lastly, you should consider real estate investing as a way of building equity. As you know, equity is calculated by subtracting the amount you own on a property from the value.

Based on the above discussion, it is true to say that real estate is a good investment idea. However, the decision to put your money in the real estate market should be made after establishing your financial position.

Source: directory