Most of the people prefer investing in real estate because of the many tax advantages. You find that people who invest in real estate are exempted by the government from paying taxes. One of the responsibilities of the government is to settle the landless and this has been handled by the real estate investors since they build houses for people to stay in. Even though in some states they are paying taxes but very little as compared to stock market. Apart from that, the government also goes a head to give them gifts as a token of appreciation for a well-done job. This is something that you cannot compare to stock market since they pay a lot of taxes and they also suffer inflation.
Steady monthly income is another benefit of real estate investment. The moment your property is completed and you have set your prices you will be sure of earning a certain amount of money monthly. With this you will be in a better position to recover the money that you used in constructing the property within a short period of time. You can as well increase the monthly charges anytime you feel like without any fear. This is something that you cannot get with stock exchange since their prices keeps on fluctuating and they are not sure of steady monthly income.
In addition, it is beneficial to invest in real estate because of the ease of getting bank loans. I swear that this is one of the most critical and challenging areas. One thing with most money lending institutions is that they require enough security which can help them in recovering their money when you disappear or die. Therefore real estate is beneficial since the banks will just sell your property to get their money back. Another advantage with this is that the building can stay they’re for even one hundred years or more.
Another benefit of investing in real estate is the low maintenance cost. This is because most of the major maintenance practices will be taken care of by the tenants and not you. One thing that you will do is increase the monthly charges by some amount after taking care of the building. For sure you will only be responsible for some minor costs which does not influence the tenants directly.
Lastly, real estate investment always appreciates in value. One thing that you should know is that this is your responsibility and by making minor adjustments you will boost the value of your house. For instance, if you paint your house and renovate all the damaged parts you will boost the value of your house by a greater value.