Real Estate Investing is an investment that has assets consisting of houses, buildings, shop houses, and others. This type of investment is said to be able to bring big profits in the future without the need for interference from any party. Property business can also be used as a side job for those of you who have more income. You don’t need to hire a lot of people to get involved in this business.
Why property investment? Here is the reason:
Each building will experience depreciation or decrease in the value of the building. Despite the increase in the value of investment property, the government allows investors to immediately reduce their property taxes during their lifetime. Thus, investors can calculate the profits they will get when making sales in the future.
2. Property prices go up every year
You need to know that the community’s need for boards is increasing from year to year. This is what the government sometimes has to think about. Not to mention the increase in population in one country which makes the government have to be able to provide houses as a place to live.
3. Controlling inflation
Inflation often occurs in both developed and developing countries. However, in developing countries, the government is thinking very hard about how to control it. Not to mention the price of housing and necessities which continued to increase from year to year, which pushed up inflation.
To overcome this, you can choose property or real estate investment because it shows a higher correlation than other types of investment such as stocks, government bonds, and corporate bonds.
4. Inflation protective property
To stimulate growth, the government has always printed large amounts of money. Owning investments in property and real estate is a smart move because as inflation increases, the price of the property will increase simultaneously.
5. Free Cash Flow
It doesn’t matter if someone buys your property for cash or on low-mortgage financing. After all, later you will receive money that will flow every month into your pocket. If someone makes installments every month, then you will get additional income from it.
6. Tax Advantages
In addition to calculating depreciation, many investors can claim a share to make monthly mortgage interest payments because it reduces the tax that will be paid later.
Currently, there are many developers offering property sales. You can see advertisements from these developers on the internet, print media, or even television. Property or real estate investment is very profitable because it will not experience deflation, aka price drops. The longer you maintain the property you own, the greater the profit you will get if you have to sell it.