When we reach a certain age, we start realizing the need of financial rewards and, thus, we start looking for options where some investments can be done. Now, when it comes to spending for profit, real estate investment is the best over any other investments. It is important to work on it if you want to relax in your old age soon after the retirement.
Needless to say, that, there are several benefits you can enjoy after investing in real estate. In fact, it would outweigh the costs that you pay in your daily life. As a real estate investor, you can expect to earn a steady flow of income, which would secure your financial condition.
A few days back, one of our customers came up with his story where he told us what drew him to real estate investment. Mr. Ganguly wanted to quit his mundane 10-7 job and do something fruitful that would secure his future. His aim was to choose a path that would help him fulfil his financial goals. He was advised to start with one rental property first in order to establish the real estate business. He then bought a 3 bedroom apartment in South Kolkata and did the needful. Now, here below are the benefits he has been enjoying as a real estate investor.
Benefits of Investing in the Real Estate Market
STEADY CASH FLOW
One of the main reasons for investing in the realty market is the steady income. This flow of cash can be earned in the form of rental income. No wonder, this income works as a huge incentive for those buying their first rental property.
LONG TERM FINANCIAL SECURITY
Investing in the real estate market provide all investors with a long term financial security. As you start with a steady flow of money in series, the rewards of this real estate investment keep bringing financial rewards. To be precise, a property on rent helps investors gradually grow a sense of security mainly because of the value they would earn in due course. The property value would gradually increase with time.
Another benefit of real estate investment is the tax exemption which the investors get directly from owning a property that has been given for rent. Please note that the rentals received from the tenant are no way subject to any self-employment tax. For long-term profits, the government offers all investors benefits which include lower tax-rates and depreciation.
As you take a loan to complete your real estate deal, it is obvious that you have to pay the amount back with interest. In fact, each time you pay, it will gradually take you one step closer to pay your principal expenses. So, you would be building both equity and wealth at the same time in the property you have bought.
So, this way Mr. Ganguly became his own boss and is presently leading a happy life. In fact, his success in this field has led him to buy his second home now, a 3 BHK flat in Ballygunge Kolkata.