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INVESTING ON REAL ESTATE

 


Key Reasons to Invest in Real Estate

Real estate is growing more and more at such a fast rate. Now most people don't really want to get involved in real estate because their own reasons. Here are 5 reasons why you should invest in real estate that might change your mind.

1.Cash Flow

Cash flow is the net income from a real estate investment after mortgage payments and operating expenses have been made. A key benefit of real estate investing is its ability to generate cash flow. In many cases, cash flow only strengthens over time as you pay down your mortgage—and build up your equity.

2.Tax Breaks and Deductions

Real estate investors can take advantage of numerous tax breaks and deductions that can save money at tax time. In general, you can deduct the reasonable costs of owning, operating, and managing a property.

Find Property in Uasin Gishu County
Baoriat Agencies

Call: +254 721-554-937

3.Real Estate Leverage

Leverage is the use of various financial instruments or borrowed capital (e.g., debt) to increase an investment's potential return. A 20% down payment on a mortgage, for example, gets you 100% of the house you want to buy—that's leverage. Because real estate is a tangible asset and one that can serve as collateral, financing is readily available.

4.Appreciation

Real estate investors make money through rental income, any profits generated by property-dependent business activity, and appreciation. Real estate values tend to increase over time, and with a good investment, you can turn a profit when it's time to sell. Rents also tend to rise over time, which can lead to higher cash flow.

Find Property in Uasin Gishu County
Baoriat Agencies

Call: +254 721-554-937

5.Build Equity and Wealth

As you pay down a property mortgage, you build equity—an asset that's part of your net worth. And as you build equity, you have the leverage to buy more properties and increase cash flow and wealth even more.

Written by : Boaz Bett

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