Whether investing in commercial properties or residential buildings, there are many benefits to becoming a real estate investor. It’s also nice to know that you don’t need tons of money to get started. In fact, when you use services like HappyNest real estate, you can begin your investment journey with just $10.
If you’re interested in real estate investing but you’re not sure where to start, here’s a quick guide to some of the most basic benefits.
Real estate investing is an excellent alternative investment to the stock market
When we think of investing, we often think of the stock market. However, most professional investors agree that while the stock market is on a bull run, it seems to be disconnected from reality.
While no investment is entirely risk-free, real estate investment is an attractive alternative. A big part of that is that real estate has a long history of building wealth for some of the county’s wealthiest people.
Real estate is widely considered to be a viable hedge against inflation. Inflation is currently on an aggressive incline which clocked in at 6.2% for the 12 months ending in October 2021. (Source: Department of Labor).
When inflation is high, the Federal Reserve may raise interest rates, which historically causes sell offs in the stock market.
Real estate investing is an excellent source of passive income for beginner investors
For many people who are unfamiliar with commercial real estate investment companies such as HappyNest real estate, the concept of placing their hard-earned dollars into real estate investments can seem like a major risk.
But in fact, real estate investing is one of the wisest forms of investment there is. You could risk playing the stock market, but returns on stocks are far more volatile than investments in physical properties. With real estate investments, you are building a reliable source of passive income. By investing in rental properties where tenants pay monthly rent, you are are. making the income you generated, generate income for you.
Tax Benefits
Tax laws make real estate investment an excellent source of residual income for investors of all kinds. The tax benefits received an added boost from the new tax laws that went into effect this year.
The law now allows for a 20% deduction of income received through pass-through entities such as LLCs.
As an additional tax benefit, many real estate investments allow you to delay the paying of taxes on a property. Of course, you should always consult with an accountant before making any final decisions. Still, there is no denying that the tax advantages of investing in a commercial property or a residential property are both numerous and lucrative.