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6 Reasons to Invest in Real Estate | Ultimate Lists Of Real Estate Investing Books

Why & How To Invest In Real Estate

Real estate investment benefits

Real estate investment benefits

Learn why investing in real estate in early age makes more sense when you have correct knowledge from reliable source.

People who are willing to invest usually turn towards stocks and bonds, even if they know nothing about the field in question. Why? Well, because this is considered to be a go-to investment type in modern society. However, why not stick to something that you’re more familiar with, why not opt for real estate. Provided that you’re already a homeowner, you probably already know a thing or two about property taxes and anyone who has ever been a tenant has at least a vague idea about what are the responsibilities of a landlord. Other than familiarity, here are six other reasons to invest in real estate.

 

Passive income

Real estate investing books

Real estate investing books

The first major reason for you to invest in real estate is the fact that this can provide you with a passive income for life. This can be achieved by turning your investment into a rental property. Residential rental property returns about 1 percent of the value every month, while commercial property returns about 4-5 percent annually. However, you need to keep up with the maintenance of the property, as well as hire someone competent enough to manage it (or do it on your own). Then, there’s the screening of potential tenants, which is far from easy.


Diversifying portfolio

Selling A House

Selling A House

When it comes to the protection of assets, keeping all your money in one place puts everything at risk. This is why you might want to diversify your portfolio by diversifying types of investment. You see, a real estate market acts differently than the stock market, which means that trends that may make the value of your stocks and bonds drop might leave your real estate assets unaffected. Moreover, if you decide to change the way in which you gather revenue, you can always pivot and there is a number of ways how. Speaking of which…


A transformation option

Real Estate Investing Tips

Real Estate Investing Tips

Every property that you own can be transformed into a different sort of venue or rental property. For instance, if you’re at a seaside, you can lease out your property as a vacation rental instead of having permanent tenants. A larger place can be transformed into a wedding venue. A duplex investment in the right location can be turned into an art gallery, while a downtown duplex can also be turned into a shared office space. Your options are numerous which also means that your investment is quite secure.


Tax advantages

Manage Payroll

Manage Payroll

Speaking of all the potential benefits of real estate property, the majority of people will immediately point at the tax advantages. The list of these advantages goes on and on. First of all, seeing as how the majority of physical assets lose value over time, you might be up for a tax break due to the depreciation of property. If you live there, you can always opt for a capital gain when you decide to sell the place. To qualify for this, however, you have to live at the place (have it listed as your primary residence) for at least two out of the last five years. Just keep in mind that you should consult an accountant prior to making a move in this field.


Always a plan B

Moving Companies

Moving Companies

The best thing about investing in real estate is the fact that you always have a plan B. We’ve mentioned transformation and renting, however, you can also just sell the place and get some of your money back. In fact, some people focus on the fix and flip aspect of real estate, which consists of buying the real estate property cheap, investing a bit of money in it, and selling it at a much higher price. Then again, you could always turn a rental property into a home and move in.


Increased cash flow

For an entrepreneur, the rental income or the income from one of the above-listed types of venue can drastically boost cash flow. This can provide you with a much greater safety of going into a business. Aside from this, you can also use a property that you own as collateral in order to get a secured business or personal loan. Either way, owning property makes it easier for you to become a successful entrepreneur.

Each of the reasons listed above is, on its own, a compelling reason why investing in real estate would be a good idea. When all of them are listed together, however, it becomes quite hard for one to find a reason against making this investment choice. Sure, you might be restricted by the size of your initial capital but where there’s will, there’s always a way.


Best Selling Real Estate Investing Books

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The ABCs of Real Estate Investing: The Secrets of Finding Hidden...
  • Achieve wealth and cash flow through real estate
  • Find property with real potential
  • Show you how to unlock the myths that are holding you back
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The Book on Investing in Real Estate with No (and Low) Money...
  • The Book on Investing in Real Estate with No and Low Money Down Real Life Strategies for Investing in Real Estate Using Other People s Money
  • Turner, Brandon (Author)
  • English (Publication Language)
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The Book on Rental Property Investing: How to Create Wealth and...
  • Turner, Brandon (Author)
  • English (Publication Language)
  • 341 Pages - 10/28/2015 (Publication Date) - BiggerPockets (Publisher)
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Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property...
  • Audible Audiobook
  • David M Greene (Author) - Clifford Ponder (Narrator)
  • English (Publication Language)
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Crushing It in Apartments and Commercial Real Estate: How a Small...
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  • Brian H Murray (Author) - Chris Abell (Narrator)
  • English (Publication Language)
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Best Ever Apartment Syndication Book
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  • Joe Fairless (Author) - Colleen Patrick (Narrator)
  • English (Publication Language)
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The Millionaire Real Estate Investor
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  • Gary Keller (Author) - Cliff Haby (Narrator)
  • English (Publication Language)
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The Book on Estimating Rehab Costs: The Investor's Guide to...
  • Scott, J (Author)
  • English (Publication Language)
  • 195 Pages - 01/17/2019 (Publication Date) - BiggerPockets (Publisher)
Financial Freedom with Real Estate Investing: The Blueprint To...
  • Blank, Michael (Author)
  • English (Publication Language)
  • 257 Pages - 07/16/2018 (Publication Date) - CreateSpace Independent Publishing Platform (Publisher)

Last update on 2019-12-07 at 21:47 PST - Details


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