Owning a house is a dream of almost every one. The comforts that come with owning a house at retirement or the tax benefits that one reaps from owning a real estate is attractive. You might be very sceptical about investing in real estate because of the long commitment and formalities. It may seem like real estate is very expensive and would take a lot of money and time from your plate, but it is an investment that would reap you many benefits in your present time and old age. The joy of owning a house is just one good reason to invest in real estate.
Here are six reasons why real estate is a good investment:
- Freedom
Owning something means it is specifically yours to keep and control. How often have you wanted to redecorate your rented home but couldn’t do so because your landlords didn’t agree? Seeing your hard-worked money go off for a place that you could not even decorate according to yourself. Owning a house gives you the freedom to upgrade, decorate and change your house according to your desire. You can upgrade your house the way you have always wanted. You can change a lot of things around without the fear of your landlord. You own the place, it’s yours. You can check out the property for sale in Bodrum.
- Appreciation
Real estate is an investment that does have a volatile change with the market values. It is highly likely that the real estate prices increase over time. Even during the crisis, the value of your real estate may go down but they always come right back up. Holding your real estate during the crisis would prove to be a good decision as real estate prices start increasing when the crisis ends. It is one of the most stable investments. Your mortgage payment remains constant but the value of your investment keeps increasing. With the ever-increasing population, the demand for housing increases, thereby increasing your real estate value. - Security
Real estate is one of the most non-volatile investments. It is highly unlikely that you will incur a loss with real estate property as its value keeps on increasing. The longer you hold the property, the less the risk. Investing in other assets like stocks or bond does not give you a secure investment. The factors that are involved in the changes of bond and stocks are beyond your control. They are always a risk involved with them. On the other hand, real estate is an investment that gives you the control. Even during a crisis, you will always have a shelter over your head. - Diversify portfolio
If you’re someone who likes investing in a lot of places and have the kind of resources to do the same, you should understand the risk involved in investing all of your resources in one investment. As mentioned before, real estate investment is a secure and less volatile investment. You can invest in a real estate which is significantly safe and less risky. This would give you the opportunity to invest in other risky investments while knowing you would not lose your all. Spreading out your investments in different assets also spreads out your risks. - Tangible Asset
A tangible asset is something that you can physically see and feel. Unlike bonds and shares, real estate is an investment that has a physical presence. Other investments can be reduced to zero value overtime with nothing tangible to hold on to. Even on the worse of days, you can still use your real estate to create cash flow. Having homeowner’s insurance can also protect your investment. A tangible asset never loses its entire value. - Improvable
Real estate is a tangible asset which is physically present for you to improve. If you’re renting your real estate for a cash flow, having a house that appeals to your customer would increase your renting capacity. Real estate in an investment that you can improve to earn more return. Your house is made of concrete material and you can always change it into something better, unlike other assets that do not give you this advantage.
Real estate is a great investment that gives you the freedom, tax benefits and is tangible. It is a safe investment and provides you with many benefits.