Posted on October 28, 2016
5 Reasons Real Estate Investing are More Profitable
Global Property Portal identifies why investors in developing countries prefer to invest in real estate sector. Most of people’s investment goal is to get financial freedom. Invest your retirement money only in one type of savings actually have a bigger risk because of the inflation that constantly happens in the economy world, so cash is impaired. To deal with inflation and balancing the portfolio is very crucial and both can be achieved by combining a variety of assets. Many investors went bankrupt in the past 5 years, even caused by the best stock; that is why the investors then glanced to the real estate sector as an alternative. If you interested to try real estate investment, you can contact our Real Estate Agents Adamstown Heights.
Here are five reasons why real estate investment is more profitable:
– Tax-Free Cash Flow
One of the main benefits of real estate investing is depreciation and mortgage interest deduction (if you take advantage from your owned fund) and also tax-free cash flow.
– Tax Cuts strategies that increase
Based on your tax status, rental properties will not only provide tax-free cash flow but also can be used as a tax deduction against income source. Before investing you are advised to consult with a taxation expert.
– Diversified Portfolio
Another advantage of investing in the real estate sector is an opportunity to minimise your risk. Real estate has a low or negative correlation to other major assets.
– Avoid inflation
Developing countries continue to try to control inflation. Real estate investments have historically demonstrated the highest correlation to inflation compared with other major assets, such as stocks, bonds and enterprise bonds. Because the government keeps printing money to stimulate growth, has real estate assets as a protection against inflation is a smart move.