Property investing consistently offers a better return on our money than other traditional forms of investing such as stocks, savings certificates, commodities, life insurance policies, consumer merchandise, bonds and others. Property is extremely versatile. Most pieces of property come with a handful of options or different ways to generate a profit. Not only that, but property is almost always appreciating, and when it is not, we can use that to our benefit.
One of the major advantages that come with investing in property is the prospect for high yields. It is not uncommon to see a profit average of 15 to 20 percent when investing in a piece of property. In fact, depending on the market, it is possible to experience an even higher yield.
Not all investing opportunities are created equal. When putting money into property, the investor is able to appreciate a higher level of personal control than when investing in alternative options. Each investment purchase can be crafted to fit the current situation and property. It can be refinanced, terms can be adjusted, and investors can rent or sell. Essentially these details are left to the investor.
Therefore, the investor gets to decide when and how to move forward with the investment. Maybe it’s not a good time to sell. The investor can opt to rent instead. There are several examples, but the point is, when we invest in property, we reserve the right to invest and sell under your own terms as determined by what personally and economically satisfies us.
High Leveraging Opportunities
Property investing offers the investor the best leveraging opportunities. For example, the cash requirements are not the same as they are with other investing alternatives like stocks and bonds that require the purchaser to borrow 50 percent of the value of the securities. In property investment, it is more common to invest between 20 and 40 percent of the value of the property. Furthermore, based on the market and particular situation, it is possible to invest with as little as five percent down.
Flexibility with Income Tax
Who doesn’t appreciate flexibility when it comes to income tax? When investing in real estate, the investor enjoys certain allowances and deductibles, subject to the policy which country that we are investing. Most notably, common expenses such as insurance premiums, property taxes, management fees, maintenance feeds, and other operating costs can effectively reduce your taxable income.