Real Estate Investment: The Gift That Keeps On Giving

It’s that time of year again. The holidays are upon us, and for most people, it is an occasion for reflection and celebration. Yet being around our most cherished love ones makes us think to the future as well. Will we be able to provide for them over the long term?

Real Estate Investment is known as the gift that keeps on giving, because having a steady, predictable income stream is something that can be a benefit throughout a person’s lifetime. Rental income from a multifamily property is one of the best sources of passive income – that’s why investors love real estate!

Below you will find a list of the five gifts of Real Estate Investment:

  1. Cash Flow – As a newbie in the world of entrepreneurship, you might want to consider a form of business that has a steady cash flow. Property rental is one of those businesses that have a steady cash flow, and after all the bills have been accounted for, you will end up with a bundle of spare money you can spend elsewhere.
  2. Tax Benefits – One of the perks of property rental is that you are not subjected to self-employment taxes. The government also offers tax benefits such as depreciation and significantly lower tax-rates for long-term profits for property rental owners.
  3. The Loan Pay Down – If you use a mortgage to but your rental property, do not worry because your tenant may be the one who actually pays your mortgage. The loan pay down in a rental property is essentially a savings account that propagates automatically, even if you are not depositing money each month.
  4. Appreciation – While your loan is being paid, the value of your property is going up. Recession may occur but even with that, prices of real estate and property will continue to go up. Everything that you bought can be rented or sold for a higher price in due time.
  5. Inflation – Everyone is scared of inflation because of the constant price hike in almost everything. But as a rental property owner you won’t despise inflation, you will cherish it! The inflation won’t affect your fixed-mortgage rate payment, which means that even if your prices go up, the amount of payment you will give will still remain the same.
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