Real estate investment is always a difficult decision for the investor because when you are purchasing real estate it’s not only an economical decision but also a emotional decision, since many people do not give up the real estate even if they are in financial crisis. Given below are some of the advantages of real estate –
- Since real estate investment involves huge sum of money, the investor do it taking all things into consideration unlike stock which are sometimes purchased irrationally without doing proper research.
- If you have real estate than it is easier to get loans from the banks or financial institutions, because banks accept real estate as mortgage when it comes to grant of loan to individuals.
- Real estate investment is often tax deductible and therefore real estate investment is preferred by the salaried class people as they can save lot of taxes due to real estate investment.
- Real estate investment does not involve paying the whole amount upfront, rather one has to pay it in installments, therefore people who do not have enough money can also go for real estate provided they have constant source of income to pay those installments.
- The resale value of real estate investment is an important advantage of this class of investment (provided you have not bought it at astronomical prices) because unless there are some unforeseen events the resale value of real estate over a period of 5 to 10 years is higher than the purchased price of the real estate