Advantages Of Real Estate Investing
Real house investments is the buying, selling, leasing and renting of land, buildings and houses and the property comprises of each and every building and what it contains in that area, land and its environment.
Residential real estate comprises of single or multifamily structures for occupation or just for non-business purpose and their ownership may depend on whether its leased or owned through agreement while the commercial real estates are basically used for business purposes and in most cases they are large as one single building can carry more than three large businesses; whereas industrial estate are used for industrial purposes and for production.
Real house investment needs a lot of capital to start and one must be armed with a lot of cash in order to survive into the business and if not so, there are sources of finance like lending from friends, micro loaning, real estate crown funding where people pool funds together to raise another business.
Even though real house investment maybe hard or quit expensive in setting and starting, it’s the most profitable, stable flow of income type of business with potential financial rewards than any other business and can give one a financial power and security for a very long period of time.
This type of business its very flexible as it includes the tenant repayments of loans and this is done by using the money they pay as rent to repay the loan.
it’s a type of business that gives one the power to do own decision making best of his/her business and this gives full anatomy and control over the real estate investment.
Real investors enjoy many tax benefits like they are entitled to lower tax rates as they own long term investments, rental income they get from tenants is not subjected to self-employment tax and government gives the m tax breaks on property depreciation insurance and maintenance.
Investors in this type of business are always advantaged during inflation; if there is high inflation and the cost of living goes high so will there rental income and the price of the property they own and this will increase the income flowing to their accounts.
This type of business sometimes requires one to borrow money incase one do not have enough capital and this is expected to be repaid with interest and after the investment is fully functional one and rental income has started to flow in, one repays the loan as he is making or increasing wealth in the same time and also viability of getting another loan .