- Appreciation – Real estate values always rise over time due to appreciation. When it comes time to sell, a wise investment might provide a sizable return.
- Leverage your Investment – Using leverage, or purchasing a property with just a portion of one’s own funds and the remainder borrowed, is a very major advantage of real estate investing.
- Tangible Asset – Property is a tangible asset that may be used to profit from a variety of revenue streams while experiencing capital growth.
- Tax Advantages – Real estate tax deductions can balance out income and lower overall taxes. Rental income is not subject to self-employment taxes.
- Customers feel confident – Some individuals feel more confident knowing their money is invested in real estate as opposed to keeping it liquid in a cash account or investing in the stock market since it is a safe investment.
