3 Reasons to Invest in Real Estate
Real estate is a reliable form of investment, as it has a history of appreciating in value over time. Real estate has traditionally been one of the most reliable forms of investment due to its stability. Housing is a necessity that we will always need. Real estate is a tangible asset, so it can be bought and sold just like any other item. It also tends to appreciate in value over time, so it can be a sound financial choice to build wealth.
It provides a steady income stream, as you can rent out the property for a profit. Additionally, investments in real estate can generate passive income in the form of rental income. This income can be used to help pay off mortgages and generate additional income.
Investing in real estate can also provide tax advantages, including deductions for mortgage interest and certain other expenses. Interest paid on a mortgage is usually tax-deductible. This can result in signification savings in the form of a lower tax bill when you file in April. Additionally, capital gains tax is not usually applicable if you're using the home as your primary residence and has been occupied by you for at least 2 of the last 5 years. In this case, profit made from the sale of the home can be tax-free.