Real Estate Investing

9 Reasons to Invest in Real Estate

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Adnan Ul Haq

Module 6:Making Money in Real Estate

9 Reasons to Invest in Real Estate

Adnan Ul Haq

9 Reasons to Invest in Real Estate

Most people are confused about whether they should invest in real estate or not. If you are also one of those people, then you’ve landed at the right place. 

We are going to tell you 9 reasons why investing in real estate can be very profitable for you. 

  • Emotional Management

If you invest in real estate you save yourself from making emotional or impulsive buying and selling decisions. This is because you can't sell real estate in the blink of an eye. You will have to spend at least 15-20 days selling real estate. 

On the other hand, if you invest in let’s say digital currency like crypto. You may sell it as soon as the values depreciate, but the prices may go up again as soon as you sell it. So, you will face loss. 

  • Switching is Hard

In real estate, switching is hard. This means if you sell or switch property from one place to another, it can be difficult because you require documentation, buyers, and sellers. 

Since switching is hard, you tend to waste less money and your wealth remains fixed. Your investment remains secure and you do not get the margin to make stupid decisions. 

  • Land Scarcity

The property prices are greatly determined by the demand and supply of land. If there is land scarcity, which means there is more demand and less supply, the prices instantly shoot up. 

So, you should invest while there is still land, and enjoy the profits while selling when the land becomes scarce. 

  • Passive Income

The key to your financial independence and future financial security is passive income. Through real estate, you can invest in assets that generate passive income. For example, an apartment complex, a house, etc. that generates monthly rent. 

  • Huge Capital Gain

There is a huge capital gain involved in real estate. For instance, if you bought a property at PKR 1 crore, its value may appreciate to PKR 2-3 crores. Thus, there are great profit margins involved. However, you need to make smart decisions while selecting a property and only invest after looking at the fundamentals. 

  • Easy to Manage

Real estate is easy to maintain. You do not need to visit every day. If any problems come up, you have to resolve them, but there is not much effort or manpower required to do that. 

On the other hand, in most businesses, this doesn't happen; you have to do work every day and put in a lot of effort. You may have to spend resources to hire manpower to get the job done.

  • Low Maintenance

In real estate, the maintenance is low. This is because it does not require too much money to fix things. For example, if you have a tenant and they agree that they will pay for all the maintenance costs, then the owner does not need to spend too much money on repairs.

  • Tax Benefits

It is one of the major benefits of investing in real estate. Taxes on properties and especially residential properties all over the world are lesser as compared to other assets. Moreover, you also get to benefit from the tax-deferred gain. 

  • Generational Wealth Transfer

If you invest in real estate, you can transfer your wealth from one generation to another. Paper currency can not be transferred, but properties can be transferred. So, real estate becomes a source of generational wealth for investors. 

These 9 beneits are enough to tell you how beneficial your investment in real estate can prove to be. So, don’t waste time and start looking for lucrative investment opportunities today!