Why should you invest in Real Estate?

Become your own boss with careful real estate investments. Uncover the reasons and ways to build a real estate investment strategy in our l

 Careful Real Estate Investments Are Paramount To Investment Strategies And How To Get Started

There are countless reasons you should seek to build wealth over time, and real estate investments are often one of the best investment strategy options available. When you increase your wealth, you put yourself in a better position to take care of your family and their future. You also give yourself the option to retire comfortably and start entrepreneurial ventures. Here are some important reasons why you should invest in real estate. 

Steady cash flow now… 



Of course, there is that initial down payment on the real estate property. Seeing those falling numbers in your bank account might hurt at first, but it’s a very familiar process and a feeling you’ll become accustomed to as you continue to invest. The worry about the future is ameliorated by the hope for real estate value appreciation. Furthermore, filling that investment property with quality tenants is the fastest way to cover the entry costs of your real estate investment.  

Rather than moving into your newly purchased home, you can rent out the space and create a new source of income. This passive income should be high enough to cover the cost of the property’s mortgage in addition to other living expenses. These rent checks are reliable forms of monthly cash so long as you’ve chosen dependable tenants.  

In a large enough residence such as a duplex or quadplex, your real estate investment can yield a steady sum of cash flow from multiple tenants. The sky becomes the limit as you accrue more value from your residential property that can then be used for subsequent investments, home purchases, or home improvements.  

An added short-term benefit to investing in real estate is the money you can save through tax deductions. In India, you can pay less in yearly taxes based on the amount of interest you pay on a home loan and how much you repay on the principal amount of the original loan. Purchasing homes, taking out loans, and paying the loans on time are all excellent ways to contribute to a healthier economy. For that reason, the government rewards real estate investors with cash-saving incentives.  

As time goes by, your commercial or residential property will be subject to inclement weather, human exposure, and other environmental factors that slowly degrade its structural integrity. For any real estate property that depreciates in value or requires maintenance repairs, the owner could have the chance to claim tax exemptions.  

…and a healthy return on investment later. 

Another amazing benefit to investing in real estate is the increase in value over the course of several years. A real estate investment is likely to appreciate in value over time barring any significant changes to the neighborhood, city, or economy in which the property resides and operates. For people with only one owned home, your residence is not only your sanctuary where you can gather with family and friends or rest your head at night. It also becomes a vehicle for generating generational wealth. Owning a home for several decades lays an excellent financial foundation for your children and grandchildren. 

In times of inflation, the increase in prices of common goods and services hurts everyone’s wallets, but real estate investors are typically in a much safer position. When prices rise across the country, property values tend to increase as well. Depending on your local laws and relationship with your tenants, you might even decide to increase the monthly rent to protect yourself against inflation. Either way, a real estate investment, whether commercial or residential, can help you remain steady with your finances during periods of inflation. 

As stated succinctly by Rocket Mortgage, if your investment goals consist of slow but measurable growth over the span of many years, then buying a home is one of the best ways to diversify your investment portfolio. In times of economic turmoil, which undoubtedly arise, a real estate investment could be appreciating in value while the stock market is taking a dive.  

When it’s time to reinvest, you can increase your real estate property’s value by making home improvements. If it’s an old home, renovations can turn your initial low-cost investment into a modern, high-value residence. Consider updating the living space with the most popular flooring material or installing the latest insulation technology, cutting your energy bill costs and increasing comfort. Additionally, it might be wise to expand or remodel your home’s kitchen. Home improvements can give a high return on investment both in the short-term experiences and in the long run with increased home valuation.  

Referring back to the tax deductions you can utilize with your investment property, you can save a tremendous amount of money by taking advantage of these exemptions after many years. Contrast this situation with renting an apartment over the same number of years. By paying your landlord a monthly rent check to live in your residence, not only do you miss out on tax-saving opportunities, but you also lose the chance to increase your net worth. Instead of paying a landlord, be the landlord. A rented apartment is a liability, but your own home is an asset.  

If you’re ready to move closer to investing in real estate, discover more below about how to make it an integral part of your investment strategy. 

How to start investing in real estate 

There are a variety of methods to jump into the real estate market that ranges from adding money into real estate investment trusts (REITs) to purchasing an entire apartment complex. Some options require very little initial investment, whilst others necessitate acquiring a loan from a bank. Starting with the easiest, most affordable option, explore the different opportunities available so you can take your next step toward increasing your wealth. 

REITs are the cheapest route to real estate investing 

Real estate investment trusts (REITs) are most similar to investing in the stock market or putting money into a mutual fund. REITs are companies that own real estate properties themselves but allow investors the chance to buy parts or shares of those properties. When the value of the property increases, you as an investor receive a percentage of that appreciation relative to your initial investment. Some REITs even make regular dividend payments to their investors regardless of appreciation in property values 

By putting money in a REIT, you won’t have to worry about finding the best neighborhood for your own home purchase, applying for a bank loan, moving into a home, or looking for reliable tenants. Without managing a physical building, all that’s needed from an interested investor is a bit of cash.  

Residential properties are readily available real estate investments

If you’re ready to jump head first into owning your own real estate property, then purchasing a residential property is a stellar choice. First, you’ll need to perform a bit of homework. To give yourself the best chance of seeing the highest return on your real estate investment, it’s vital that you observe the properties available, take into account the wider economic state of affairs, speak with experts and research the latest trends. 

Secondly, after deciding upon which residence to buy, it’s time to acquire a loan from a bank. So long as you prove to the lender that you can make regular payments on that mortgage, there should be little to no problem receiving approval from the bank. Leveraging the bank’s funds is an essential tool available to interested homebuyers who can’t afford to cover the entire cost of a residence in one payment. 

Next, it’s time to decide if you want to move your family into the new home or find tenants to rent the space from you. As mentioned previously, reliable tenants provide the homeowner with an additional source of monthly income. This rental payment can cover part or all of the monthly mortgage payments you make to the bank. It’s possible that the rental check might even cover part of the rent you pay your landlord or the mortgage you’re paying on an additional home.  

Whether you or a tenant lives in the residence, the property value is hopefully appreciating over time. When the home value increases enough to your liking, it might be time to consider selling for a profit. 

House flipping involves selling your real estate investment quickly 

Rather than waiting years before your property appreciates enough in value to be worth selling, some real estate investors choose to buy and sell a home in a fast turnaround time. Due to this quickened pace, the homeowner likely won’t even have enough time to live in the space. Ideally, the goal with house flipping is to purchase a living space at a very low cost and sell it at a much higher price. Striving for this ideal gives a diligent homebuyer a chance to earn the largest profit possible. So what does it take to flip a home? 

Following the same steps as mentioned above, it’s imperative that a flipper perform thorough research on the property. Is it located in a prime location? Is the neighborhood safe and quiet? Will someone buy a grand version of this simple home?  

Along the same vein of research, a potential house flipper should calculate what kind of home improvements are needed to most effectively raise the value of the home. Some house flippers might deem it worthwhile to demolish everything and build an entirely new residence. Smaller renovations might involve installing an improved ventilation system, replacing the floors, or changing the aesthetics with more desirable colors.  

When it comes to house flipping, every residence requires varying levels of renovation that must be reconciled with a future buyer’s preferences and willingness to buy your home. Furthermore, almost every homeowner will make improvements to their living space whether the goal is their own enjoyment or to raise the value of their property. House flipping is simply buying and selling a real estate investment at a much faster rate.  

Commercial real estate investments: businesses are your tenants 

Perhaps the housing market in your area of interest is not as fruitful as you’d prefer. Or maybe you’d like to further diversify your real estate investment portfolio. In that case, investing in commercial real estate is a solid option since business tenants might be more reliable sources of income.  

Examples of types of commercial properties include office buildings, strip malls, warehouses, and data centers. As with all investments, perform adequate research to determine which locations see more foot traffic, where corporations and small businesses are looking to rent, and which industries are flourishing or declining.  

Visit Investopedia to further explore the numerous ways to begin or expand your real estate investment portfolio. 

Be your own boss 

The overarching reason as to why investing in real estate is paramount to your investment strategy is the financial freedom you gain. Selecting the right property can be extremely rewarding for you and your family’s future. If you’re looking to retire early, real estate investments can be one of the fastest ways to reach that goal. For people who love working, investing in real estate is one of the best gifts you can pass on to your family. As for the entrepreneurs out there, capitalizing on prime real estate opportunities opens up a vast landscape in which to create something new. 

If you’re looking to purchase your first home or add to your real estate portfolio, discover what Bren Corporation has to offer. We have finished and nearly completed projects available for those seeking a brighter and more fulfilling future for themselves and their families.  

Feel free to contact us with any questions you have, and be sure to follow us on social media to watch the build progress of our Zahara and Northern Lights properties.