A lot of people are skeptical about property investment for a number of reasons. Some think it’s too complicated for them to venture into, some are afraid to end up choosing the wrong property and some are simply afraid of failure.
But investing in property is not exactly what many people think it is. There are many benefits of investing in property.
If you are looking into Cebu investment properties yet still feel hesitant, these facts about real estate might change your mind.
Property investment is less complicated than you think.
While most may think that property investment is complicated, it’s actually quite simple. It all boils down to your finances. When planning to buy property, the most important thing you have to do is make sure your finances are sorted out. With substantial information and understanding of your prospects, you’ll be able to select the best option with minimal risk.
You can control your investment.
Property gives you more control compared to other types of investment. You have the last say on which property you want to buy, location, how you want to buy and whether you want to resell the property or not. There may be a number of factors that can affect the value of your property but in the end, you are still the one who has control over it.
Investing in property gives you a guarantee.
With property, you are guaranteed to have steady income for years to come. People will always need a place to live. Whether it’s short-term or long-term, you get earn from rent. As long as you have tenants and consistent collection of rent, you have a steady source of income and will be able to gradually pay off mortgage.
Real estate gives you stability.
Since your property provides steady income, it also gives you stability. Real estate is more stable compared to stocks. Even if there is no increase in your property’s value, you can still earn from rent albeit having to keep the rate the same. In real estate, it is important to know that price drops are not actual losses unless you sell your property.
Tenants basically pay your mortgage.
In this setting, your tenants are basically the ones paying your mortgage. What you need to do is to just make sure rent is paid consistently. While you’re at it, you can work on fostering a good relationship with your tenants to keep them for a much longer time.
Your property can help reduce your tax bills.
Investment property enables you to claim tax deductible expenses which means your tax can be reduced significantly. With the help of an experienced accountant, you will be able to lower your taxes legally.
Property is more predictable.
Unlike other types of investment, property is certainly more predictable. In real estate, there are ways of predicting what could happen in the future. Knowing the kind of property you have acquired, you can determine what direction it could take in consideration to market trends.
Investing in property is one of the best ways to build wealth.
There are several ways to build your wealth these days and investing in property is one of them. It may sound cheesy but real estate has made a lot of people wealthier. According to Fortune Magazine, 97% of all wealth stems from property.