The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage.
Once you have a tenant paying you, banks regard this as additional income and this creates the opportunity to build a property portfolio over time. A good relationship with the bank means future properties can be acquired for a lower deposit amount. Property investment appreciates over time, so what you paid for your estate initially could double in value when you decide to sell. Property appreciation also warrants annual rental increases.Real estate investors make money through rental income, appreciation, and profits generated by business activities that depend on the property. WHY BUY A HOUSE? The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage.
You can depreciate the cost of buildings, but not the land. Land investments can produce high returns, passive income, and large profit margins and you don't have to break the bank, if you understand how land loans work. However, as with other forms of investments, profitably investing in land requires careful due diligence. Land is a tangible, finite resource that is relatively inexpensive to acquire.
Renting also allows you a bit more flexibility than homeownership would, whether you're in a house or an apartment. With renting, you're not tied to the property long-term, and you're also less responsible for saving for repairs, paying for taxes and insurance, and keeping up with other expenses