Business has been particularly good this year, and you just know you need to invest that extra profit wisely. You’ve been contemplating diversifying your portfolio for quite a while, and the thought of real estate has crossed your mind ever so often, right? Well, in case you’re still wondering why now would be a good time to do so, have a look at these real, proven advantages of investing in commercial real estate:
- A steady source of cash flow: In addition to all your hard-earned money every month, and stock investments, a sound investment in real estate can is a tried and tested method of generating extra cash. The additional income stream it enables on a regular basis through rentals alone prompts most people to consider a real estate an excellent investment option. More often than not, this sum is passive, thus leaving you with some nice zeros to spend as you please after clearing all the bills!
- You retain control: In comparison to other investment options, where the stock market may influence value of your money, you are the boss in your real estate deals. Buying and selling is up to you alone, and therefore the success of your portfolio is in your hands. If you keep a keen eye on the trends, maintain your property in tip-top shape to drive higher values, lay low when needed and then hustle when the time is right, chances are you will have a great sense of financial security!
- Tax advantages: Who doesn’t love those?!Imagine being granted sizeable tax advantages for insurance, legal fees, maintenance repairs and property depreciation by the government. You’ll get to enjoy all these as well as a lower rate of taxation when you invest in real estate.
- An inflation hedge: Yes, we all know prices are going through the roof. The good news is, if you’ve bought a good piece of real estate, it will probably continue to appreciate in value quietly and steadily over the years too! So, no matter how expensive the future looks, given the correct investment, you’ll be more than ready to face it head-on with a solid asset in hand!
Almost convinced, but would like more information? You can contact a financial advisor or real estate agent for more information on proper real estate or commercial real estate investing.