Aside from traditional assets such as bonds and stocks, real estate investment has come out as one of the most profitable alternative asset investments you can make. It is a lucrative and reliable way to earn long term profit. Agreed that it can be unfamiliar territory when you are starting out-but with a few basic tips to get you started, you will gradually learn how to carve your own path to success.
Real Estate Investment
Now the first question is what exactly is real estate investment? It is basically the purchase of any structure on land-be that a house, building, fence, trees, roads, etc. with the purpose of earning profits.
Real Estate Investors
Real estate investors can be businessmen or even a single individual who purchases or leases a piece of property within the real estate market.
Often people tend to invest their purchases in real estate investment trust(REIT) where cash flow is gathered from a pool of investors, and you can buy shares to purchase your own property.
Others tend to apply to real estate investment firms. As co-founded by Philip Barach, Jonathan Vista Investment Group is a private real estate investment firm that offers profitable deals to investors that only a percentage of their income returned to the firm. Additionally, there are also online real estate crowdfunding platforms where you can make arrangements with other investors to deal with larger projects.
Investing in real estate can have several benefits that you wouldn’t usually get out of other forms of investment. Moreover, investors have found real estate investing to be one of the most secure investing assets, leading them to gain profit in return effectively. Listed below are a few of these benefits.
Constant Flow of Income
This has to be one of the major reasons why most people tend to invest in real estate. Stable earning through rental income is a massive inducement for you to start investing in your own rental property.
Moreover, when investing in a property, you can earn an additional sum of cash if you play your cards just right. You need to keep in mind that you should always purchase land in areas where the population is high and the need for a place to rent is high in demand- urban areas or cities where there are colleges and universities can be a few examples.
You can also invest in multiple properties and earn a steady income through each accommodated place. Selecting your property should be done wisely as you can secure yourself a steady flow of long term revenue. This allows you to save enough for retirement-or donate to a cause such as other famous real estate investors like Philip Barach. He has donated to Jewish Federation, SABAN Community Clinic, FINCA, and Valley Community Healthcare.
Tax Convenience
Tax benefits are also another reason that pulls investors towards real estate investment. For one, there are a couple of taxes that investors are exempted from. If your cash flow is derived from a rental property, you will not be subjected to pay the self-employment tax.
Moreover, property tax decreases every year as the government allows tax intervals for property depreciation, property maintenance, transportation cost, and insurance. And to boot, you are also granted lower tax figures when it comes to long term real estate investments.
You Are in Control
Don’t like the idea of being someone’s employee? Well, real estate investment can fix that for you because this is the kind of career where you get to be your own boss.
You have the authority to control various aspects of your property. Once you become a real estate investor, you get to create your own strategic arrangements that can determine your success. You also get to choose the rent rates and adjust the amount of rental income per month. Furthermore, you also get to choose which tenants you want, renting and maintaining your property.
Managing your investments can lead to beneficial profit exchange in the long run while also adding diversity to your portfolio. Remember that every investment has different requirements.
As long as it matches your goals and has the necessary resources to manage it, go ahead and gain the exceptional benefits you can only attain through real estate investments.
