Real estate investment can be both emotionally and financially challenging. It does not matter if the property is bought for a short-term living purpose; the investor’s eye is always focused on return on investment and appreciation in value. With a wide range of options ranging from commercial real estate, plots, small flats, independent villas, and villas among others easily available on popular real estate portals, investing in property has never been easier.
Read on to know the compelling reasons to invest in real estate in Lalor:
1) Tangible Asset:
Real estate is a tangible asset, which means it takes longer to sell it since you have to negotiate with a buyer and go through all the legalities. At the end of the day, you’ll walk away with your original investment and hopefully a capital gain.
2) Lower Risk:
Unlike other assets, real estate has a physical nature. Land’s value increases over time since there is a limited supply. When compared to stocks and bonds, real estate investments have a lower risk due to their disconnection from their managers.
3) Tax Benefits:
Real estate investment offers excellent tax benefits. When you own a property, you will always be protected. Investing in real estate allows you to deduct several costs associated with ownership, including taxes, interest, maintenance, property insurance, and repairs. Additionally, if you sell your property for more than what you paid, the gain you earn will not be taxed. It is instead taxed as capital gains. The benefits of all of these will increase your profit without requiring you to pay taxes.
4) Increase Value:
The value of real estate always increases over time. A good investment can yield enormous profits when the time comes to sell. Renting out property offers investors long-term financial security and a steady stream of passive income. As you pay down your mortgage and build equity, your cash flow will only improve over time. The average real estate investment provides you with a cash flow of 6%.
5) A Great Place to Live:
Lalor, a suburb in Melbourne, Victoria, Australia, offers a variety of attractions and experiences making it a good investment location. Several factors make it a great place to live, including its calmness, low cost of living, cleanness, greenery, and easy access to all the necessary amenities. Most tenants here are families and retirees seeking a good value home. Being part of Victoria, Lalor has a broad-based economy with well-developed primary, manufacturing, and service sectors contributing significantly to the economic output.
6) Leverage:
A major benefit of real estate investment is the ability to leverage one’s money by investing just a small amount of one’s own money and borrowing the rest. With a down payment from savings and a housing loan to cover the rest of the purchase price, you can invest in prime real estate for as little as 15% of the total cost.
Conclusion:
Investing in real estate is one of the best-performing asset classes. There is no doubt that it yields among the highest returns of any portfolio year after year. Do it right, and you could retire well ahead of schedule.
Ready to invest in Real Estate in Lalor? One Group Realty is a real estate agent in Lalor, specializing in property buying, selling, and renting, and comprises a team that is experienced, and successful in the real estate industry in Melbourne.
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