What It Means
When you graduate from wanting to become the mere owner of property to an investor of property, you need strong financial and investment consulting.
How It Benefits You
Stable Returns: Total returns, which are a combination of rental income and capital appreciation, are relatively consistent.
Hedge against inflation: Real estate income tend to increase faster during inflation, thus allowing you to maintain its real returns.
Leveraging: Generally, with a down payment of 10-25 percent, you can purchase a property with the rest being financed. Hence, if rightly used you can invest in different types of properties with lesser money.
Tax Planning: Tax rebates on both the principal and interest component of a home loan are available. These benefits can however change or be abolished by the Government.
Depreciation: You can write-off the wear and tear of a commercial property thus minimizing your tax impact.
Diversification: Real estate helps you to easily diversify your portfolio.