There are numerous benefits in real estate investing. Investors can enjoy predictable cash flow, tax advantages, diversification and excellent returns with well-chosen assets such as condominiums. Do you want to invest in real estate? Here are some of the things you need to know.
Real estate values increase over time, and with a good investment, you could turn a profit when it’s time to sell. According to the National Association of Realtors, appreciation levels for real estate have been 6% per year. Rents also tend to increase over time which can lead to greater cash flow.
Cash flow is the net spendable income obtained from the investment after all the mortgage payments and operating expenses have been made. A great real estate investment will give you with at least 6% cash flow.
Real estate can be added to your portfolio of diversified assets to lower your portfolio volatility and provide a higher return per unit of risk. This is because real estate has a low correlation with other major asset classes.
In real estate, mortgage is paid off over time and cash flow increases. This means that real estate yields a bigger amount of cash flow as time goes by which is a perfect investment for retirement.
The final and most obvious advantage in real estate investment is it is easy and understandable for everyone. It’s easy to purchase and there are no unconquerable financial barriers to enter.
You can contact our sales representatives by just clicking the contact button below and ask us about your real estate investment questions. We have condominiums all over Manila, Pasig and Quezon City. Here in #VistaResidences we can!