Many people choose to invest for various reasons such as financial freedom, especially in the real estate field. Safeguarding their assets from inflation. And meeting future needs such as education or retirement. The funds you have can be invested in various types of assets such as gold, bonds, stocks, mutual funds, and real estate. The choice of investment assets depends on your objectives and risk profile.
If you choose real estate investing, you will get benefits in addition to getting some money. These benefits include:
Cash Flow or Cash Flow
Many people choose real estate investments because of cash flow. Which is the extra money left after paying all bills? Real estate investment can be a passive income so you can take the time to build another business, traveling, or investing in other properties.
Tax-free Cash Flow
One of the benefits of real estate investment is depreciation, credit interest deductions, and tax-free cash flow. You can wait for capital gains from the sale of your property, without including tax expenses in your cash flow.
The Value of Investments Continues to Rise
The value of real estate investment will continue to rise due to more people, higher demand and less land. Therefore, investment in property is not only in the short term but can be decades. The value of your investment will be much greater in the future.
Can Ward off Inflation
Real estate investment such as houses, apartments, and land will always go up every year. Historically, real estate investment showed the highest correlation with inflation. It is different if you save your money in savings or deposits whose interest is smaller than inflation or even invest in other large assets such as stocks and bonds.
Mortgage Payments are Borne by the Tenant
The rent you receive each month is more than enough to meet your expenses, including mortgage payments. Basically, your property tenant is paying your mortgage. Therefore, it is important to make tenants feel at home and happy to continue to rent your property
You can be Controlled
Unlike investing in stocks that cannot be controlled, you can control real estate investments because you are a decision-maker. If the market is increasingly competitive, you can advertise. If the price goes down, you can wait until the price rises again or improve your property to increase the sale value.
You can choose the type of property that you will invest in. Determine the monthly rental fee, and who will take care of your property. All of these decisions have an impact on the profit and loss of your cash machine property.
Although you can get passive income from real estate investing, it does not mean you are passive in managing your investment. You should continue to learn how to get the best offer, evaluate your investment, and calculate the financial real estate you want to buy.