Real Estate business is the most powerful asset for wealth building. Before we jump to the Real Estate benefits, first discover what Real Estate actually is. Basically, Real Estate is: a land, property and buildings. The term “Real Estate” means physical(real) property. There are many benefits of owning Real Estate business, and some of these are mentioned below:
Real Estate Business Benefits:
1. Income from Rent
Rental income is a great benefit of owning a Real Estate. It has the power of making money for you without you. In general, it is a best example of passive income. You can recover the total cost of your property in 60 months if your rent is 1.6% of the total cost per months. It’s a nice benefit.
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2. Asset Appreciation
Everything increases in value with the time but, Real Estate is the only asset that increases with the higher profits in less time. This benefit encourages the owners of real estate because of its value appreciation. With this benefit, you can own more properties with the help of buying and selling for short term.
3. You are the Boss
You are the boss of your properties. And this is the best part. By the way, You can do what you want when you want with your properties, e.g. if you want to sell it for higher value, you can. Or if you want to rent it out, you can. You can decide what you want to do.
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4. Inflation Proof
Real estate is one of the few greatest investments that benefits you in inflation. As the inflation increases, the property values and rents increases. This is a great hedge against inflation and you can take advantage of this benefit by building an investment portfolio against inflation.
5. Long Term Stability
Well, Real estate is stable for long term investment. This quality of real estate helps investors to be richer with time. But it will only work with Buy-and-Hold strategy. If you intend to hold it for 5 or 10 years, then it will give you huge benefits.
Like every other investment, real estate also has it’s drawbacks like Higher transaction cost, low liquidity, requires management and maintenance, etc. But the best investors leverage with both the advantages and disadvantage to increase value and profits. And you can too.