Real Estate over the years has become a common investment option. Buying a house is one of the best ways to invest your money. Investing in Real Estate is a sure guarantee of getting great returns and you also get to save your money from taxes. Investment gives one financial freedom where they can get it en-cashed whenever the need be. Having financial freedom means you can have a better life for yourself and loved ones. Buying a house can be a huge financial responsibility, but it comes with its benefits.
Here are the 5 top reasons why buying a home can be a great way to invest
#1 Mortgages; way Cheaper than Rent
The Cost of renting a house is way higher than owning a home. You get to save money by taking a mortgage. One thing that might stand in a prospective homeowner’s way is the downpayment. However, in some states, various programs have been put in place to assist first-time homeowners acquire a home for a lower down payment.
#2 Steady Source of Income
When you lease out your property, this means you get regular flow of income from rental payments every month, while also securing your assets. If you are savvy investor, the rental income should be higher than the mortgage to pay off the loan without any extra efforts over a long run.
#3 Building Equity
The appreciation of the price gained over time for your home is referred to as home equity. As you commence payments of your mortgage, the amount of equity you have in your home grows. This way, you get to secure money which could be used to purchase your next home.
#4 Taxing benefits
Investing in real estate means you get tax benefits from the government. Basically, when a property is sold, the person is required to pay to the government income tax. However, if the person chooses to invest the money back into acquiring another home, then taxes are not levied.
#5 Investments/ financial Freedom
If you’re looking for a long term investment plan, then buying a home is just the perfect way. We all know that buying a home is one big decision to make as it comes with a huge financial responsibility, but it is one of the greatest ways of investing with assured great returns awaiting you. Land is an asset, and over time landed properties appreciate in value and so does the rental income paid on the property.
When you own a home, then it means you have an investment, you wait while the equity on the house grows, and then you sell the property off when it is high. By buying a house for yourself today, you not only get to enjoy the profits in the future, this also adds up to your financial freedom in the years to come
If you make enough money on the sale of your first home you can even invest some of that into other types of investments such as stocks, bonds, retirement accounts, or more real estate.