When you invest in the residential real estate market it is known to much easier to manage and a lot more predictable than the stock market. Investing in stocks or even mutual funds requires a lot of in-between fees and payments, and the terms and conditions can be slightly intimidating for some. Here are five good reasons why you should seriously consider investing in residential real estate.
So Why Invest in Residential Real Estate?
It’s something most of us have some experience in
Most of us would have some experience of making decisions with regard to real estate. If you have ever searched for a home and visited a few places, you know what the customer is looking for and what kind of houses are available in the market and that counts as real estate experience.
It can provide monthly cash flow
If you do get a tenant who is agreeable to you and has settled on a rent, it is a steady cash flow that is sure to come to you at the beginning of every month.
It can provide great tax benefits
Nearly all jurisdictions provide, what is known as a homestead exemption that reduces taxable value of the property, also there are additional exemptions for veterans and in some cases can qualify for complete exemption from taxes.
It can provide a fantastic retirement income
Post retirement income from property also has a lot of tax exemptions and can be a steady source of money in your senior years.
It can increase your net worth substantially over time
If you choose your properties wisely, there is a definite net value addition over time in any property, if not for the building itself, then definitely for the land. Value appreciation is a sure thing.
So if you are thinking of purchasing a residential property and investing in real estate, look no further, now is the right time.