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Discover Some Reasons Why Real Estate is a Desirable Investment

Posted by webmaster on 20 July 2023
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Real estate is widely known as a piece of earth, or any improvements attached to the land be it developed residential, commercial, industrial or agricultural property.  It is a rare investment vehicle; provides people with a place to live in and fosters economic activities while working as an investment.

When done correctly, it’s globally recognized as the most popular, profitable and stable investment choices that can generate high profit return.

Some significant benefits of investing in real estate that I have carefully selected are:

Income and Wealth

Real Estate investment has the ability to generate cash flow and create a passive income for the investor. This can be achieved through purchasing rental real estate and other real estate backed investments. It is also a proven way to build transgenerational wealth over time as the ownership of properties can be passed on to generations yet unborn. An efficient mix of the different types with marie consulting & partners will yield an even better return on investment.

 

Capital Appreciation

A good and strategic real estate increases in value over time. This allows you to build equity. Like anything else, the value of real estate is determined by supply and demand therefore a growing population of a city will have a positive impact on the value of real estate in that location since shelter is a basic human need, demand will naturally go up and vice versa. Therefore, it is essential to embark on consultation to analyse the considered market. This is to ensure your investment is directed to a productive environment to maximize returns.
 

Leverage

Another powerful benefit of real estate often overlooked is the ability to refinance and raise capital for other businesses when needed. The equity build from the increased value of the property is leveraged to expand investment in real estate and other assets. The buying stage in real estate acquisition plays a vital role in the entire process. This is because if a valuation exercise is carried out prior to the purchase, can guide the negotiation and closing. This will ultimately impact positively the appreciation of the asset.
 
 

Inflation Hedge

Real Estate is the best hedge against inflation as the value of the property and rental yield can increase with inflation. A good real estate investment should generate between 0.7% to 1% of the capital value monthly and projected 8% to 12% per annum or more which is above the average global inflation rate.
 
 

 

Every person who invests in a well selected real estate in a growing section of a prosperous community adopts surest and safest method of becoming independent, for real estate is the basis of wealth.

Theodore Roosevelt Tweet

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