1. You Can Enjoy Tax Benefits Through Depreciation
There are different reasons to invest in real estate. It is a proven way to build wealth over time and can help generate cash when leased. It can also provide you with tax benefits through depreciation, and this can help increase your returns.
2. Owning Property Generates Wealth
Everyone should own at least one house or a piece of property. One of the many benefits of investing in real estate is being able to generate wealth through appreciation, building equity, and hedging against inflation. It can also provide cash flow with passive income from rental properties. These are the reasons why real estate should be a key component of your investment portfolio.
3. The Value of Real Estate Appreciates Well Over Time
Industrial real estate has been a very attractive investment for many individuals and institutional investors. Recently, the amount of capital chasing the ownership of industrial real estate has substantially increased. Values are increasing for two reasons. The first is that rental rates are continuing to rise because of the demand for these facilities and increasing construction costs. Secondly, with the number of investors bidding on industrial real estate investments, the cap rate, or yield, are continuing to compress, which is increasing values.
4. You Can Help Provide a Home for Others
One overlooked benefit of real estate investing, specifically residential real estate, is the pride in helping provide a home for others. Everyone needs a roof over their head, but not everyone has the upfront resources to purchase a home, making renting the only other option for them. We often hear about landlords shirking their responsibilities and making living conditions downright nightmarish for some tenants. By investing in a residential real estate, not only are you helping house a family, but you’re ensuring that family is housed in safe, healthy, clean, and fair conditions.
5. You Can Help the Local Economy
One of the advantages of real estate investing is having the opportunity to help the local economy. As a real estate investor, you will have the opportunity to employ local licensed contractors, purchase building materials, and generally stimulate the local economy near the construction site.