Buying Real Estate is a good way of long term investment


Unless we win a lottery, very few of us will end up getting rich overnight! Most of us work hard and even go without at times to save up our money. That’s not enough, though. We also need to put the money we earn to work – by long-term investing and managing a diverse portfolio – to see anything like real wealth. When you do this, remember that a very important part of your long-term investment should be real estate.

You may feel that your money is safer in a term deposit or bank account – but all you earn there is interest! Check out what real estate cost 35 years ago – property is valued much higher now than it was then. Add to that having some tenants paying the mortgages off and it makes this kind of investment even more profitable! Next, hire the right real estate property management company to handle your properties, and you can just sit back and reap the profits!

Stability is a nice place to be. Sure, property values can fall like any other growth investment, but you won’t see the wild swings experienced by shares – a situation usually driven by short selling. Most people who buy real estate are in it for the long haul and this is a steadying influence.

Bricks & mortar, lumber & nails – it’s tangible. You will never drive down the block one day and see a raw, gaping piece of land where your property used to be – it won’t just disappear all of a sudden like a flop fund investment or shares. Not only that, you can improve your returns by renovating the property, or by using other strategies.

Easy finance & great tax advantages. Real estate is one of the few forms of investment where it’s easy to use a bank’s money – make a down payment, leverage your capital, and increase your overall return on investment. Leveraging your capital due to depreciation and mortgage interest deductions, should deliver a tax-free cash flow – wait for capital gains on the property sale in the distant future.

Investment or business, or both. Since renting residential real estate properties is a business, some expenses are valid deductions, such as travel costs to check on your properties. What you save should easily pay for that residential property management company you hire so you can watch your ‘business’ and investments grow!

Hello, long-term income! You get more than just capital growth with this investment – you’ll get a relatively stable form of income with the rent that’s paid on your properties. As the economy grows, your rental income increases. When the mortgages are paid off, all that rental income is pure gravy!

Investing in real estate is a great way to increase your income or retire early! Long-term rental properties are generally the best choice. They can easily be handled by a good real estate property management company, offer great returns, and produce a cash flow for years to come. When you do decide to invest in real estate, don’t walk into it blind. Meet with an experienced real estate agent to avoid any pitfalls and to make sure you get the investment you deserve!