Why should you invest in real estate?
When it comes to investing your hard-earned money into something, there are a lot of factors to consider. Investing in anything without thinking about the risks, cash flow, benefits, security, and reliability is not a clever idea at all. But when you take all these factors into consideration, there is hardly any sector that is more secure, reliable, and profitable than the housing market. There are plenty of reasons to invest in real estate but we will discuss some of them.
Easy to get started :
You don’t need specialist knowledge to start investing in property: in fact, many Australian property investors didn’t start off intending to make their fortune through property. Instead, they just bought a house to live in. It’s only after seeing the value of their home increase – and realising how much wealth you can generate – that many investors take the leap and start proactively investing.
GUARANTEE OF CASH FLOW:
Cash flow is the net income generated from a real estate investment after the mortgage payment and operating expenses have been made. Generating a steady flow of cash is one of the most important aspects of any type of investment. And real estate guarantees that. After paying up a mortgage or loan (if you have any), cash flow increases over time. Of all the reasons to invest in real estate, this may be the most straightforward one. But there is more opportunity to increase the cash flow if you invest in high-quality apartments with every kind of facility.
You Can Leverage Your Equity:
As you pay your mortgage balance down and/or renovate the property to increase its value, you can leverage the equity to further your investments. The equity in your property is the difference between your home’s value and the amount you owe on your mortgage. Any difference is your profit.
If you keep the home, you can’t use all of the equity, but you may be able to take out up to 80% of the home’s value, using what’s left to invest in more real estate. This is a great way to increase your portfolio without waiting until you have enough money saved for a 20% - 30% down payment for another home.
It’s a Great Retirement Savings Plan:
When you invest in real estate, it’s not liquid. You invest in it for the long term. As time passes, you earn more equity in the home. When you’re in retirement or near it, you can sell the property and use the profits to get you through retirement. Many call it a forced retirement plan. You aren’t putting money away in a 401K or IRA, but you pay the mortgage every month. If you rent the property out, your rent should cover the rent and other expenses incurred, which means you invest in your retirement without contributing money each month.
Talk with your tax advisor before you sell the property, though, so you can minimize your tax liabilities when you sell the home. Since it’s not a principal residence, you don’t get the capital gains exclusions, but there are other ways to reduce your tax liability.
REAL ESTATE ALWAYS APPRECIATES IN VALUE :
Unlike other assets, the value of a property, be it a piece of land or an apartment rarely depreciates over time. That is to say, you can’t buy the same property with the same amount of money ten years later. This is why the real estate sector is considered sturdier than the other sectors. So if you are looking for a secure and reliable investment option,real estate can be a great fit for that.
GENERATE INCOME THROUGH RENTING:
People who invest in real estate can generate income every month through rent. It can be a residential property or a commercial one, if you don’t want to use it for yourself, you can shift somewhere else and put your property up for rent. This is a great way to generate income without much hassle. However, if you want to sell the property but fear that you will not get a good price, you can always rent it out for a while and sell it when the price goes up.
Work With a Real Estate Agent:
Most people work with a real estate agent to buy a house or sell their property. While this works great for primary residences, not all real estate agents work with investors. Empower Estate agents are working with investors in this sector in several suburbs of South western Sydney like Minto, Ingleburn, Campbelltown, Claymore, Blairmount, Bardia and so on.
If you go this route, interview several agents to determine who offers the service you need. One of our great agents is SANA ULLAH currently working with home sellers to sell their property in the market and creating investment opportunities in Southwest Sydney real estate market.
Find how much your property has grown in the current real estate market?
Note: This is not a financial advice
If you find a real estate agent who understands your needs as an investor, you can use them to help you find a home. Empower estate is most likely known in areas below as
-best real estate agent in claymore
-real estate agent in minto
-real estate service in blairmount
-top real estate agent in campbelltown
-best real estate agent in bardia